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# Coherent Breaks Ground on Expanded Texas Facility, Scaling AI’s Optical Backbone

**[NVIDIA](https://daily.dev/sources/nvidia)** · 6 min read · 0 upvotes · 0 comments

## Summary

Coherent has broken ground on an expanded manufacturing facility in Sherman, Texas, scaling production of indium phosphide (InP) wafers and optical components critical to AI infrastructure. The expansion is backed by a $50 million CHIPS Act grant and builds on ~$17 million in earlier Texas state and local support. NVIDIA, which has a multiyear strategic partnership with Coherent including a $2 billion investment and multibillion-dollar purchase commitment, was represented at the ceremony by CEO Jensen Huang. The Sherman facility runs what Coherent calls the world's first volume-production 6-inch InP fab — a significant leap over the industry-standard 3- and 4-inch wafers, roughly quadrupling usable area per run. These InP lasers and transceivers are essential for connecting GPU clusters like the NVIDIA Vera Rubin Ultra NVL576 across data center distances where copper signaling falls short. The expansion is expected to support over 550 direct jobs at full capacity.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://blogs.nvidia.com/blog/coherent-texas-ai-optical>

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Tags: [#nvidia](https://daily.dev/tags/nvidia), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure)

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