Sherman, Texas, February 7, 2026
Coherent Corp. has received a $14.08 million grant from the Texas Semiconductor Innovation Fund to boost indium phosphide (InP) wafer production in Sherman, Texas. This project represents over $154 million in capital investment and will establish the world’s first 6-inch InP wafer fabrication plant. The initiative is set to create numerous high-skill jobs and enhance Texas’s role in the semiconductor manufacturing sector.
Sherman, Texas Receives $14 Million State Grant for Semiconductor Manufacturing
Sherman, Texas – Coherent Corp. has been awarded a $14.08 million grant from the Texas Semiconductor Innovation Fund to enhance the production of indium phosphide (InP) wafers at its Sherman facility. This initiative represents a capital investment exceeding $154 million and aims to establish the world’s first 6-inch InP wafer fabrication plant in Sherman. The project is expected to create numerous high-skill jobs in the region and bolster Texas’s position in semiconductor manufacturing.
Significance of InP Technology
InP wafers are crucial for developing advanced photonics and high-speed connectivity solutions, including data communications, telecommunications, artificial intelligence interconnects, and next-generation wireless networks. The expansion of InP wafer production in Sherman is poised to meet the growing demand for these technologies.
Coherent Corp.’s Expansion Plans
The grant will enable Coherent Corp. to significantly increase its InP wafer production capacity in Sherman. This expansion is part of a broader strategy to strengthen the semiconductor supply chain and support technological advancements in the United States.
Background on Sherman’s Semiconductor Industry
Sherman has become a focal point for semiconductor manufacturing, with several major investments in recent years. Notably, in 2017, Apple awarded $390 million from its Advanced Manufacturing Fund to Finisar, a leading manufacturer of optical communications components, to enhance VCSEL production in Sherman. This investment led to the creation of over 500 high-skill jobs and revitalized a previously shuttered manufacturing plant.
Additionally, in 2025, Apple committed a portion of its $600 billion U.S. investment to support tool installations at the Texas Instruments facility in Lehi, Utah, and a new site being built in Sherman, Texas. This partnership aims to advance manufacturing for components used in Apple products.
These developments underscore Sherman’s growing role in the semiconductor industry and its significance in the broader context of technological innovation and manufacturing in the United States.
FAQ
What is the purpose of the $14 million grant awarded to Coherent Corp.?
The grant aims to enhance the production of indium phosphide (InP) wafers at Coherent Corp.’s Sherman facility, supporting the establishment of the world’s first 6-inch InP wafer fabrication plant in Sherman. This expansion is expected to create numerous high-skill jobs and strengthen Texas’s position in semiconductor manufacturing.
What are InP wafers used for?
InP wafers are essential for developing advanced photonics and high-speed connectivity solutions, including data communications, telecommunications, artificial intelligence interconnects, and next-generation wireless networks.
How has Sherman contributed to the semiconductor industry?
Sherman has become a focal point for semiconductor manufacturing, with significant investments from companies like Apple and Coherent Corp. These investments have led to the creation of high-skill jobs and the revitalization of manufacturing facilities, underscoring Sherman’s growing role in the semiconductor industry.
Key Features of the $14 Million Grant to Coherent Corp.
| Feature | Details |
|---|---|
| Grant Amount | $14.08 million |
| Purpose | Enhance InP wafer production at Sherman facility |
| Capital Investment | Over $154 million |
| Project Significance | Establish world’s first 6-inch InP wafer fabrication plant in Sherman |
| Expected Outcome | Create numerous high-skill jobs and strengthen Texas’s semiconductor manufacturing |
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