Coherent is expanding its manufacturing footprint in Texas to support the growing demand for optical interconnects in artificial intelligence systems. The company broke ground on a new production facility in Sherman, which will focus on scaling indium phosphide wafer fabrication. This development strengthens the supply chain for high-performance networking components used in large-scale data centers.
New Sherman plant scales indium phosphide wafer production for NVIDIA Vera Rubin Ultra systems
The expanded site targets increased output of optical modules that connect servers and switches within AI clusters. NVIDIA CEO Jensen Huang attended the ceremony alongside Coherent CEO Jim Anderson to mark the milestone. The partnership highlights the critical role of specialized materials like indium phosphide in next-generation optical communication hardware.
Coherent secured a $50 million grant from the CHIPS Act to help finance the construction and equipment for the Sherman plant. NVIDIA also committed $2 billion toward research, capacity building, and domestic manufacturing support for Coherent's operations. These investments aim to secure reliable access to advanced optical components for future AI infrastructure projects.
The facility will specifically produce indium phosphide wafers required for Vera Rubin Ultra NVL576 optical interconnects. This production expansion addresses the need for higher bandwidth connectivity as AI workloads continue to scale across data centers.
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