NVIDIA partner Coherent has broken ground on an expanded manufacturing building in Sherman, Texas, US, backed by a US$2bn NVIDIA investment announced in March 2026. Coherent produces lasers, optical components and compound semiconductors, operating what it calls the world’s first six-inch indium phosphide (InP) fab. At the ground-breaking event on 16 June, Coherent announced a US$50m CHIPS Act grant, building on roughly US$17m in earlier support from the Texas CHIPS programme and the Sherman Economic Development Corporation. The expansion will add advanced wafer fabrication equipment and cleanroom capacity to increase production of InP-based photonic devices, doubling manufacturing production space and quadrupling wafer production capacity. At project completion, the Sherman site is expected to create more than 1,000 jobs, including more than 550 direct advanced manufacturing, engineering and technical roles. NVIDIA CEO Jensen Huang stated that Coherent’s work is "vital to the future of AI" and "vital to reindustrialising the United States." Coherent CEO Jim Anderson called the milestone important for American manufacturing and AI infrastructure.