Coherent Starts Building Texas Plant to Boost AI Optical Infrastructure

Lead

Coherent broke ground on June 16, 2026, for an expanded manufacturing building in Sherman, Texas, aimed at scaling the optical components that power modern AI systems.

Context

The new site adds to Coherent’s existing Texas operations, which already host the world’s first 6‑inch indium phosphide wafer line. The company specializes in lasers, optical parts, and compound semiconductors that link AI hardware together, turning electrical signals into light‑based data streams.

According to NVIDIA Newsroom, the expansion is a response to the increasing need for high‑bandwidth, low‑latency interconnects as AI models grow larger and inference workloads multiply across data centers.

Impact

By increasing capacity for indium phosphide wafers, Coherent can produce more of the photonic chips that enable “optical backbones” for AI. These backbones reduce the distance data must travel, cutting energy use and improving speed for training and inference tasks.

The Texas facility will also create local jobs in advanced manufacturing and engineering, reinforcing the region’s emerging role as a hub for silicon‑photonic production. Industry observers note that a larger supply of high‑quality lasers and optical components could accelerate the deployment of AI accelerators that rely on light‑based communication.

What’s Next

Construction of the new building is slated to begin this quarter, with production lines expected to ramp up in late 2027. Coherent plans to integrate the expanded capacity with its existing 6‑inch indium phosphide platform, allowing customers to order larger volumes without sacrificing yield.

Future announcements may detail partnerships with AI chipmakers and cloud providers seeking to embed photonic interconnects into their next‑generation servers. As the optical supply chain matures, the Texas plant could become a critical node for the broader AI ecosystem.