Mentioned:
America is getting serious about indium phosphide wafers. Which is exactly why the Department of Commerce is preparing to put up tens of millions of dollars in government funding to Coherent.
What’s happening:
- Coherent (NYSE: COHR) has been awarded a letter of intent from the United States Department of Commerce to receive up to $50M USD in funding to expand their indium phosphide chip factory located in Sherman, Texas
Why it matters:
- The new conditional funding from the United States Department of Commerce is expected to double Coherent’s Texas factory size and quadruple their output of indium phosphide wafers
Going deeper:
- Indium phosphide wafers are highly important to data centre optical networking and high speed communication systems and Coherent currently operates the world’s largest high volume 6 inch indium phosphide wafers fabrication facility
- The Texas government also previously committed $20M USD in state and local funding to expand their Sherman, Texas manufacturing facility through the Texas Semiconductor Innovation Fund and the Sherman Economic Development Corporation
