Sherman, Texas, February 7, 2026
Governor Greg Abbott announced a $14 million grant from the Texas Semiconductor Innovation Fund to Coherent Corp. for the production of Indium Phosphide wafers in Sherman, Texas. This investment aims to create approximately 70 jobs and enhance the local economy, while reinforcing Texas’s leadership in semiconductor manufacturing. The project promises significant capital investment and positions Texas as a hub for cutting-edge technologies, critical for industries like telecommunications and artificial intelligence.
Austin, Texas
Texas Semiconductor Innovation Fund Boosts Local Economy
A $14 million grant to Coherent Corp. leverages innovation for economic growth
In a significant move for the Austin TX business landscape, Governor Greg Abbott has announced the awarding of a Texas Semiconductor Innovation Fund (TSIF) grant amounting to $14,076,031 to Coherent Corp. This funding aims to accelerate the production of Indium Phosphide (InP) wafers in Sherman, Texas, representing a substantial capital investment exceeding $154 million. This project showcases not only Texas’s commitment to fostering entrepreneurial innovation but also highlights the potential for economic growth when regulatory environments support rather than hinder business activities.
Coherent Corp. plans to establish the world’s first 6-inch InP wafer fabrication plant in Sherman, consolidating its North American semiconductor operations and significantly scaling InP wafer production. The relevance of InP technology is indispensable for emerging fields such as next-generation photonics and high-speed connectivity solutions including telecommunications, data communications, artificial intelligence interconnects, and advanced sensing technologies. The strategic focus aligns with Texas’s reputation as a leader in technological advancement.
Strengthening Texas’s Tech Leadership
Governor Abbott emphasized Texas’s pivotal role in the technological sphere, drawing attention to the state’s skilled workforce and its conducive business climate. The governor noted that Coherent’s investment not only reinforces Texas’s leadership in semiconductor manufacturing but also ensures the state remains at the forefront of future technologies. This aligns well with the trend of leveraging local talent and resources to enhance economic viability and technological prowess, paving the way for entrepreneurs and small businesses to thrive without undue regulatory encumbrances.
Company Insights and Community Impact
Beck Mason, Executive Vice President of Semiconductor Devices at Coherent Corp., expressed appreciation for the grant, which he indicated would expedite the establishment of the world’s first 6-inch InP wafer factory in Texas. The Sherman facility will not only scale operations but is also expected to grow the workforce in Texas while bolstering the U.S. supply chain for technologies critical to sectors such as data centers, telecommunications, and artificial intelligence.
A Promising Future for Sherman and Beyond
Representative Shelley Luther pointed out the significant implications of the Sherman facility, describing it as a hub for advanced photonics and AI technologies that will create a brighter future for families and the local workforce. The infusion of 70 new jobs promises to uplift the local economy while reinforcing the discussions around Texas’s standing in the semiconductor industry. This is a quintessential example of how investment in technology can yield substantial community benefits, providing opportunities for skill development and employment in high-demand areas.
The Role of the Texas Semiconductor Innovation Fund
The Texas Semiconductor Innovation Fund, initiated through the Texas CHIPS Act signed into law in 2023, is designed to maintain Texas’s competitive edge in semiconductor research, design, and manufacturing. The fund aims to support projects that capitalize on the state’s existing investments in the semiconductor industry, promote expansions of semiconductor-related companies, and enhance the expertise and capabilities of Texas institutions of higher education. This approach is crucial in an era where technological advancements are rapidly evolving, and a robust semiconductor sector is foundational to economic resilience.
Investment Landscape and Stock Performance
As of February 7, 2026, Coherent Corp. (COHR) stock reflects healthy performance at $227.68, with an intraday high of $233.90 and a low of $206.31. This denotes investor confidence in Coherent Corp.’s trajectory following this grant and the expansion of its innovative capabilities.
Key Takeaways
This investment marks a pivotal moment for Austin’s economic landscape, symbolizing opportunities for local entrepreneurs and businesses to flourish in a supportive environment. As Texas continues to embrace innovation and maintain a favorable regulatory climate, the business community stands poised to lead the charge in economic growth and job creation. Engaging and supporting such initiatives will be vital for onlookers who aim to see the Austin TX business ecosystem thrive.
Frequently Asked Questions (FAQ)
What is the Texas Semiconductor Innovation Fund (TSIF)?
The Texas Semiconductor Innovation Fund is a grant program established through the Texas CHIPS Act signed into law in 2023. It aims to maintain Texas’s position as a leader in semiconductor research, design, and manufacturing by supporting projects that leverage the state’s investments in the semiconductor industry, encourage expansion of semiconductor-related companies, and develop the expertise and capacity of Texas institutions of higher education.
What is Indium Phosphide (InP) technology used for?
Indium Phosphide (InP) technology is essential for enabling next-generation photonics and high-speed connectivity solutions, including data communications, telecommunications, artificial intelligence interconnects, advanced sensing, and 6G wireless and satellite communications networks.
How many jobs is Coherent Corp.’s Sherman facility expected to create?
Coherent Corp.’s Sherman facility is expected to create approximately 70 jobs, contributing to the local economy and reinforcing the state’s position in the semiconductor industry.
What is the capital investment for Coherent Corp.’s Sherman facility?
The project represents a capital investment exceeding $154 million.
Where can I find more information about Coherent Corp.?
For more information about Coherent Corp., visit their official website.
Key Features of Coherent Corp.’s Sherman Facility Project
| Feature | Details |
|---|---|
| Grant Amount | $14,076,031 from the Texas Semiconductor Innovation Fund |
| Capital Investment | Exceeding $154 million |
| Location | Sherman, Texas |
| Facility Type | World’s first 6-inch InP wafer fabrication plant |
| Expected Job Creation | Approximately 70 jobs |
| Technological Focus | Next-generation photonics and high-speed connectivity solutions |
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