Coherent to expand semiconductor production for AI optical interconnects

Source:The Register

02 — Who / Subject

Coherent, Nvidia

03 — Where / Locus

Sherman, Texas, USA

04 — When / Temporality

June 2026

Verified: June 17, 2026

05 — Why / Core Summary

"Coherent plans to invest $650 million to expand its Sherman, Texas plant. The expansion aims to quadruple indium phosphide (InP) wafer production to meet AI demand. Nvidia previously invested $2 billion in Coherent to bolster supply chains."

Conflict Analysis

Strategic investment to address the critical bottleneck of optical interconnects in large-scale AI infrastructure.

Recommended Background Resource

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Chip War: The Fight for the World's Most Critical Technology

Author: Chris Miller

This book provides the essential geopolitical and industrial context for why companies like Coherent are critical to the AI supply chain. It explains how specialized materials like Indium Phosphide and advanced packaging are the new front lines in the global competition for AI dominance.

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