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

2026-06-16 · Source: NVIDIA Blog · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Cloud Computing & IT Infrastructure, Emerging Technologies & Innovation · Depth: Intermediate, extended

Summary

Coherent recently broke ground on an expanded manufacturing facility in Sherman, Texas, designed to significantly scale the production of 6-inch indium phosphide (InP) wafers. These advanced compound semiconductors are vital for the optical interconnects that form the backbone of modern AI infrastructure, enabling high-speed data transfer between chips, servers, and data centers. The expansion is supported by a \$50 million CHIPS Act grant, alongside \$17 million from Texas programs, and a \$2 billion strategic investment from NVIDIA, which also includes a multibillion-dollar purchase commitment for Coherent's laser and optical networking products. This initiative aims to quadruple the facility's output, create over 550 direct jobs, and address the critical need for domestic supply chains in optical components, which are more power-efficient than copper for large-scale AI systems like NVIDIA Vera Rubin Ultra NVL576.

Key takeaway

For AI Architects and Directors of AI/ML planning future data center expansions, recognize that optical interconnects are critical for scaling beyond current compute limits. Your infrastructure strategy must prioritize advanced optical components, like those from 6-inch indium phosphide wafers, to ensure power-efficient, high-speed data transfer across large AI systems. Invest in partnerships that secure domestic supply chains for these essential technologies to mitigate future bottlenecks and support long-term growth.

Key insights

Optical interconnects, leveraging 6-inch indium phosphide wafers, are fundamental for scaling high-performance AI infrastructure efficiently.

Principles

• AI system scalability hinges on robust connectivity.
• Optical interconnects optimize power for long-distance data transfer.
• Domestic advanced manufacturing strengthens supply chains.

In practice

• Adopt 6-inch InP wafers for optical component manufacturing.
• Deploy optical modules for inter-rack data center links.
• Integrate external laser modules for co-packaged optics.

Topics

• Indium Phosphide
• Optical Interconnects
• AI Infrastructure
• Semiconductor Manufacturing
• CHIPS Act
• NVIDIA Partnership

Best for: Investor, CTO, VP of Engineering/Data, AI Architect, Director of AI/ML, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by NVIDIA Blog.