Texas – Texas is going to play a bigger part in the global semiconductor sector. Governor Greg Abbott announced a new grant to help North Texas make more sophisticated chips.
State authorities said that more than $14 million from the Texas Semiconductor Innovation Fund will help Coherent Corp. increase the production of Indium Phosphide wafers at a facility in Sherman. This is part of a larger initiative that is estimated to bring in more than $154 million in total investment.
State lawmakers said that the project was another proof of Texas’ expanding power in high-tech manufacturing. Abbott noted that the size of the investment and the building of what is intended to be the world’s first six-inch Indium Phosphide wafer production plant show that Texas has a competitive workforce and business climate. He said that the project was part of a bigger effort to make Texas the focus of next-generation technological development.
Indium Phosphide is very important for modern computing and connectivity. The material is employed in photonics and ultra-fast communication systems that support data transfer, artificial intelligence infrastructure, telecommunications networks, sensing technologies, and new wireless and satellite platforms.
Coherent wants to bring together semiconductor operations that are currently spread out over several U.S. locales by focusing production in Sherman. This will also increase the company’s manufacturing capacity.
The company’s founders indicated that the state funding will speed up development and long-term growth in Texas. This will include more jobs and stronger local supply chains connected to data centers, AI systems, and advanced communications.
Local leaders also saw the initiative as a big step forward for the Sherman area, saying that they hoped the money would help make the area a hub for AI and photonics-driven innovation.
The money comes from the Texas CHIPS Act, which was passed into law in 2023 to improve semiconductor research, design, and production in the state.
The law’s programs are meant to encourage the growth of businesses, enhance ties with higher education, and keep Texas at the top of the list of states that make semiconductors.
