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This expansion marks a critical supply chain milestone for AI infrastructure by scaling indium phosphide production to support high-speed optical interconnects required in next-generation GPU clusters. The shift from smaller 3- and 4-inch wafers to larger 6-inch formats directly addresses yield constraints, enabling the mass deployment of essential lasers and transceivers that allow data centers to transmit information at light speed between chips.
NVIDIA’s $500B AI Plan Backed by Coherent’s Texas Fab
Coherent is expanding its Sherman, Texas facility, scaling production of 6-inch indium phosphide wafers—critical for NVIDIA’s AI optical.
Coherent has begun construction on an expanded manufacturing facility in Sherman, Texas, increasing production of 6-inch indium phosphide wafers, a critical component across NVIDIA’s entire AI infrastructure. The expansion addresses the growing need for optical connectivity within increasingly powerful AI systems, enabling data transmission at the speed of light between chips, servers, and data centers. NVIDIA founder and CEO Jensen Huang and Coherent CEO Jim Anderson attended the groundbreaking ceremony, signifying a strong partnership aimed at bolstering domestic semiconductor manufacturing. Huang said during a conversation with Anderson that AI is a broadly impactful general-purpose technology. This move, supported by a 50 million CHIPS Act grant and NVIDIA’s commitment to a…
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