Coherent Breaks Ground on Texas AI Optics Expansion, Secures $50 Million CHIPS Grant
Updated
Updated · NVIDIA Blog · Jun 16
Coherent Breaks Ground on Texas AI Optics Expansion, Secures $50 Million CHIPS Grant
3 articles · Updated · NVIDIA Blog · Jun 16
Summary
$50 million in CHIPS Act funding will help Coherent expand its Sherman, Texas plant to raise output of indium phosphide wafers and optical components used in AI data-center links.
The expansion targets a key AI bottleneck: moving data between chips, servers and racks, where Coherent says 6-inch InP wafers and optical modules can carry signals farther and more efficiently than copper.
Jensen Huang joined Coherent CEO Jim Anderson at the site, underscoring Nvidia's reliance on optical interconnects as larger systems such as 576-GPU rack-scale designs push networking demands higher.
The Sherman site already hosts what Coherent calls the world's first 6-inch indium phosphide fab, and Anderson said the expanded facility should support more than 550 direct jobs at full capacity.
The project extends a deeper Nvidia-Coherent tie forged in March, when Nvidia agreed to invest $2 billion in Coherent alongside a multibillion-dollar purchase commitment for U.S.-made optical products.
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Nvidia and Coherent’s $1.5 Billion Texas AI Factory: Transforming U.S. Supply Chains, Jobs, and the Future of Artificial Intelligence
Overview
Nvidia and Coherent are building a new AI factory in Texas, marking a major shift in how advanced AI systems are made. Instead of just making chips, Nvidia is now focusing on delivering complete AI systems, which requires rethinking production and assembly. By clustering more manufacturing in the U.S.—with chipmaking in Arizona and assembly in Texas—they aim to optimize efficiency and strengthen the domestic supply chain for AI technologies. This strategic move supports growing demand for AI, reduces risks from global disruptions, and helps secure America’s leadership in the fast-evolving AI industry.