SHERMAN, TEXAS, Dec. 9, 2024 (GLOBE NEWSWIRE) – On Friday, December 5, 2024, it was announced that Coherent Corp. (NYSE: COHR), a leader in optoelectronic devices and technology, has signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce under the CHIPS and Science Act for a proposed investment of up to $33 million to support the modernization and expansion of a state-of-the-art manufacturing cleanroom in Coherent's existing 700,000 square-foot facility in Sherman, Texas. This project will expand the world's first 150 mm indium phosphide (InP) manufacturing line by adding advanced wafer fabrication equipment to produce InP devices at scale.

"This proposed investment allows Coherent to accelerate our industry leadership in InP technology and manufacturing," said Dr. Giovanni Barbarossa, Chief Strategy Officer and President, Materials Segment, for Coherent. "We are very excited to partner with the U.S. Department of Commerce, Senator John Cornyn, the state of Texas, and the Sherman Economic Development Corporation as we expand our efforts to deliver world-class optoelectronic products as part of the AI infrastructure build out, as well as for advanced sensing applications."

"By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans," said Sen. Cornyn. "The chipmaking capabilities these resources will enable at Coherent in Sherman will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come."

InP optoelectronic devices are widely used in applications such as datacom and telecom transceivers including for AI infrastructure applications, advanced sensing for consumer electronics, and medical and automotive applications. The increased production of Coherent's InP devices, which are increasingly growing in demand, would allow the U.S. to advance supply chain resiliency and technological leadership and create 70 direct jobs.

About CHIPS for America

CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. Visit chips.gov to learn more.