Governor Greg Abbott has announced that Coherent Corp. will receive a Texas Semiconductor Innovation Fund (TSIF) grant of $14,076,031 to boost the production of Indium Phosphide (InP) wafers in Sherman. The project is expected to bring more than $154 million in capital investment.
“Texas is the new frontier for technological innovation,” said Governor Abbott. “This $154 million 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. With our skilled and growing workforce and the best business climate in the nation, Texas is where the future is building.”
The InP technology produced at this facility will be used for next-generation photonics and high-speed connectivity applications, including data communications, telecommunications, artificial intelligence interconnects, advanced sensing, as well as 6G wireless and satellite networks. The Sherman site will become a central hub for Coherent’s North American semiconductor operations, consolidating activities currently spread across different locations and increasing InP wafer output.
“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,” said Beck Mason, Executive Vice President of Coherent Corp.’s Semiconductor Devices division. “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 U.S. supply chain for photonics technologies powering data centers, AI, telecommunications, and other advanced connectivity applications. Coherent is proud to invest in Texas and to advance the state’s leadership in semiconductor manufacturing.”
Representative Shelley Luther commented on how this development could affect both local workers and broader industry trends: “This positions Sherman as a hub for advanced photonics and AI technologies,” she said. “With Texas leading the nation in semiconductor innovation, we’re building a brighter future for our families, local workforce, and the global supply chain right here at home.”
Governor Abbott signed into law the Texas CHIPS Act in 2023 to create TSIF—a program aimed at maintaining Texas’ position as a leader in semiconductor research and manufacturing—and established related initiatives such as the Texas Semiconductor Innovation Consortium (TSIC). These programs are managed by divisions within his office focused on economic development.
The Office of Texas Governor Greg Abbott has contributed significantly to job growth across Texas according to its official website. Since being elected governor in 2014 Greg Abbott has led efforts that include supporting economic opportunities statewide and delivering services throughout Texas. The office operates primarily out of Austin’s State Insurance Building and was recognized when Greg Abbott was named among TIME’s 100 Most Influential People in 2024. Its focus includes job creation initiatives along with educational improvements and individual liberties protection.
More information about Coherent can be found online.
