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, Texas. The project represents an investment exceeding $154 million and is set to establish the world’s first 6-inch InP wafer fabrication facility.
“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 planned facility will consolidate Coherent’s North American semiconductor operations into one location, allowing for more efficient production of InP wafers. This technology is crucial for next-generation photonics applications and high-speed connectivity solutions such as data communications, telecommunications, artificial intelligence interconnects, advanced sensing, and upcoming wireless and satellite networks.
“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 unit. “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 Sherman’s role: “This positions Sherman as a hub for advanced photonics and AI technologies. 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.”
More details about Coherent can be found on their website.
The TSIF was created following Governor Abbott’s signing of the Texas CHIPS Act into law in 2023. The act established both TSIF—a grant program aimed at supporting semiconductor research—and the Texas Semiconductor Innovation Consortium (TSIC). These initiatives are administered by the Texas CHIPS Office within the Governor’s Economic Development & Tourism Office.
According to information from the official website, under Governor Abbott’s leadership since his election in 2014, his office has emphasized job creation—helping lead to national records in jobs growth—as well as economic opportunity expansion across sectors like semiconductors. The governor’s office operates out of Austin at the State Insurance Building but serves communities throughout all regions of Texas.
Abbott has been recognized among TIME magazine’s 100 Most Influential People in 2024 (source). His administration continues efforts focused on enhancing education opportunities—particularly through investments like TSIF—protecting individual liberties, empowering parents with school choices, ensuring southern border security (source), and advancing economic priorities statewide.
