Governor Abbott Announces Texas Semiconductor Innovation Fund Grant To Coherent

TEXAS, February 6 - February 6, 2026 | Austin, Texas

Governor Greg Abbott today announced that a Texas Semiconductor Innovation Fund (TSIF) grant of $14,076,031 has been extended to Coherent Corp. to accelerate scaled production of Indium Phosphide (InP) wafers in Sherman. The project represents more than $154 million in capital investment.

“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.”

InP technology is essential for enabling next-generation photonics and high-speed connectivity solutions such as data communications, telecommunications, artificial intelligence (AI) interconnects, advanced sensing, and 6G wireless and satellite communications networks. Coherent’s Sherman facility will serve as a strategic consolidation point for the company’s North American semiconductor operations, streamlining activities currently spread across the U.S. and scaling InP wafer production.

“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 Coherent Corp. Semiconductor Devices Executive Vice President Beck Mason. “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.”

“This positions Sherman as a hub for advanced photonics and AI technologies,” said Representative Shelley Luther. “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.”

View more information about Coherent.

Governor Abbott signed the Texas CHIPS Act into law in 2023 to establish the Texas Semiconductor Innovation Fund (TSIF), a grant program to continue Texas’ leadership in semiconductor research, design, and manufacturing, as well as the Texas Semiconductor Innovation Consortium (TSIC). These programs, administered by the Texas CHIPS Office, a division within the Governor’s Texas Economic Development & Tourism Office, are designed to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.