Coherent Corp. (NYSE: COHR) is expanding its semiconductor manufacturing operations in Sherman, Texas, supported by significant public funding. The company has signed a letter of intent to receive up to $50 million in direct funding under the CHIPS and Science Act for the project. Additionally, Coherent has secured nearly $20 million through a funding round involving the Texas Semiconductor Innovation Fund and the Sherman Economic Development Corporation.
The expansion at the Sherman facility aims to double the manufacturing production space and quadruple wafer production capacity. The site currently operates as the world’s leading 6-inch Indium Phosphide manufacturing plant. The company states that the additional investment strengthens its core presence in the Indium Phosphide semiconductor market.
This industrial expansion coincides with strong financial performance for Coherent. Shares of the company have gained over 106% in 2026. The stock surged nearly 49% after Coherent was added to the S&P 500 index. The company attributes its recent gains to robust demand for optical networking hardware driven by artificial intelligence applications and a multi-billion-dollar equity collaboration with Nvidia.
Coherent Corp. develops, refines, manufactures, and markets engineered materials, opto-electronic components, devices, and lasers. These products serve the industrial, communications, electronics, and instrumentation markets. The company’s federal backing under the CHIPS Act highlights the strategic importance of its semiconductor manufacturing capabilities.
Further details regarding the specific timeline for the expansion completion or the exact breakdown of the Nvidia collaboration were not provided in the source material. The current status of the Indium Phosphide facility’s global market share beyond its current leading status is not yet clear.
