News: Optoelectronics
9 February 2026
Texas Semiconductor Innovation Fund grants Coherent $14m to accelerate scaled production of InP wafers
Texas governor Greg Abbott has announced that a Texas Semiconductor Innovation Fund (TSIF) grant of $14,076,031 has been extended to materials, networking and laser technology firm Coherent Corp of Saxonburg, PA, USA to accelerate scaled production of indium phosphide (InP) wafers in Sherman, TX. The project represents more than $154m in capital investment.
“This $154m investment by Coherent to establish the world’s first 6-inch InP wafer fabrication plant in Sherman is testament to Texas’ leadership in semiconductor manufacturing and the technologies of tomorrow,” says Abbott.
Coherent cites applications of InP technology in photonics and high-speed connectivity solutions such as datacoms, telecoms, artificial intelligence (AI) interconnects, advanced sensing, and 6G wireless and satellite communications networks.
The Sherman facility will serve as a strategic consolidation point for the Coherent’s North American semiconductor operations, streamlining activities currently spread across the USA and scaling InP wafer production.
“Coherent Corp is honored to receive this grant from the Texas Semiconductor Innovation Fund and appreciates the support of Governor Abbott, the Texas Economic Development & Tourism Office, and the Texas Semiconductor Innovation Consortium executive committee,” says Coherent’s Semiconductor Devices executive VP Beck Mason. “This grant accelerates the establishment of the world’s first 6-inch indium phosphide wafer factory in Texas — a major milestone as we scale operations, grow our Texas workforce, and strengthen the US supply chain for photonics technologies powering data centers, AI, telecommunications, and other advanced connectivity applications,” he adds.
“This positions Sherman as a hub for advanced photonics and AI technologies,” comments representative Shelley Luther.
Abbott signed the Texas CHIPS Act into law in 2023 to establish the Texas Semiconductor Innovation Fund (TSIF, a grant program focusing on research, design and manufacturing) as well as the Texas Semiconductor Innovation Consortium (TSIC). These programs, administered by the Texas CHIPS Office, a division within the Governor’s Texas Economic Development & Tourism Office, are designed to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.
Oxford Instruments’ plasma processing equipment enabling Coherent to ramp up 6-inch InP fabs
