Texas awards $14M semiconductor grant to Coherent for InP wafer factory

Governor Greg Abbott announced a Texas Semiconductor Innovation Fund grant of $14,076,031 to Coherent Corp. to accelerate scaled production of Indium Phosphide wafers in Sherman. The project represents more than $154 million in capital investment. The grant supports Coherent's plan to establish a 6-inch InP wafer fabrication plant in Sherman. The facility will serve as a strategic consolidation point for the company's North American semiconductor operations and will scale InP wafer production. InP technology is essential for data communications, telecommunications, artificial intelligence interconnects, advanced sensing, and 6G wireless and satellite communications networks. Beck Mason, Coherent Corp. Semiconductor Devices Executive Vice President, said the company is honored to receive the grant from the Texas Semiconductor Innovation Fund. He expressed appreciation for the support of Governor Abbott, the Texas Economic Development and Tourism Office, and the Texas Semiconductor Innovation Consortium Executive Committee. The funding accelerates the establishment of the world's first 6-inch Indium Phosphide wafer factory in Texas, he said. Representative Shelley Luther said the project positions Sherman as a hub for advanced photonics and AI technologies. With Texas leading the nation in semiconductor innovation, the effort builds a future for local workforce and the global supply chain, she said. The Texas Semiconductor Innovation Fund was created under the Texas CHIPS Act, which Governor Abbott signed into law in 2023.