Laser components and indium phosphide fabs
Sherman, Texas expansion broke ground in June 2026, backed by a $2 billion NVIDIA investment.
The numbers
What it is
Lasers for transceivers, including VCSELs, edge-emitting lasers and pump lasers, made on 6-inch indium phosphide wafers. The company is expanding InP manufacturing capacity in the U.S. and Europe.
Why it matters to the stock. Indium phosphide laser supply has limited datacenter output in recent quarters. More InP capacity is the main lever for the transceiver ramp, and the NVIDIA deal adds a purchase commitment for advanced lasers.
News
Coherent breaks ground on expanded 6-inch indium phosphide building in Sherman, Texas
Coherent broke ground on an expanded building at its Sherman, Texas campus, home to what the company describes as the world's first 6-inch indium phosphide fab.
Coherent signs letter of intent for up to $50 million CHIPS Act funding for Sherman expansion
Coherent signed a letter of intent for up to $50 million in direct CHIPS and Science Act funding from the Department of Commerce to expand its Sherman, Texas indium phosphide plant.
Coherent capex climbs to $547.2 million for nine months as it adds capacity
In its fiscal Q3 2026 release, Coherent reported additions to property, plant and equipment of $547.2 million for the nine months ended March 31, 2026, up from $309.5 million a year earlier.
NVIDIA to invest $2 billion in Coherent and sign multibillion-dollar purchase commitment
NVIDIA and Coherent signed a multiyear, nonexclusive strategic partnership on March 2, 2026 to develop optics technology for next-generation data center architecture.