In Sherman, Texas, Coherent is building the foundation for a new chapter in AI infrastructure. The expanded manufacturing facility, now under construction, will produce indium phosphide wafers—key components that enable high-speed optical interconnects essential for modern AI systems.
The project, announced during a groundbreaking ceremony attended by NVIDIA CEO Jensen Huang and Coherent CEO Jim Anderson, marks a significant step in domestic semiconductor manufacturing. It follows a multiyear strategic partnership between the two companies, which includes a $2 billion investment from NVIDIA to support Coherent's R&D and U.S.-based production.
Indium phosphide wafers, though less visible than logic chips, are critical for AI scalability. As systems like NVIDIA's Vera Rubin Ultra NVL576—comprising 576 GPUs across eight racks—push the limits of data center connectivity, traditional copper wiring becomes impractical. Optical solutions, leveraging silicon photonics, offer a more power-efficient alternative for long-distance signaling.
Coherent's expansion is backed by federal and state support, including a $50 million grant from the CHIPS Act. The facility, expected to reach full capacity in the coming years, will create over 550 direct jobs and contribute to Texas' growing role in advanced manufacturing. While specifics on production timelines remain limited, the project underscores the increasing reliance on domestic semiconductor supply chains for AI infrastructure.
The partnership between NVIDIA and Coherent highlights a broader trend: the need for high-performance connectivity to match advancements in compute power. As AI systems grow larger, the focus shifts from raw processing capability to efficient data movement—a challenge that optical solutions are poised to address.
