The Department of Commerce has allocated $33 million to Coherent to establish the first 150mm indium phosphide (InP) manufacturing line in Sherman, Texas. This project will modernize the company’s 65,000-square-meter (700,000-square-foot) facility with advanced wafer fabrication equipment to meet growing demand for InP devices. These components are critical for AI infrastructure, telecom, medical technologies, and advanced sensing. The investment aims to boost U.S. supply chain resilience while creating approximately 70 jobs.
SkyWater Technology in Bloomington, Minnesota, will receive $16 million to upgrade its facility and increase production capacity for 90nm and 130nm wafers by 30%. The modernization efforts include replacing key equipment and improving cleanroom and IT systems. The project supports SkyWater’s work in defense, aerospace, and biomedical sectors and is expected to create 70 jobs. The state of Minnesota is contributing $19 million through its Forward Fund to amplify the impact of the CHIPS Act funding.
In Lubbock, Texas, X-Fab will receive $50 million to expand and enhance its silicon carbide (SiC) foundry, the only high-volume SiC facility in the U.S. The funding will support the development of critical infrastructure for the electric vehicle and renewable energy markets, which increasingly rely on SiC technology for high-power applications. The project is expected to create 150 jobs and strengthen partnerships with regional institutions such as Texas Tech College of Engineering.
Coherent (Sherman, Texas)
• Funding: $33 million from the CHIPS Act.
• Project Scope: Establish a 150mm indium phosphide (InP) manufacturing line.
• Facility: 700,000 square feet (65,000 square meters).
• Applications: AI infrastructure, telecom, medical, and advanced sensing.
• Jobs Created: 70.
SkyWater Technology (Bloomington, Minnesota)
• Funding: $16 million from the CHIPS Act; $19 million from Minnesota’s Forward Fund.
• Project Scope: Increase wafer production by 30%; upgrade cleanrooms, IT systems, and equipment.
• Applications: Defense, aerospace, automotive, biomedical sectors.
• Jobs Created: 70.
• Partnerships: Hennepin Technical College, University of Minnesota, and others.
X-Fab (Lubbock, Texas)
• Funding: $50 million from the CHIPS Act.
• Project Scope: Expand and modernize the SiC foundry.
• Applications: Electric vehicles, renewable energy, and high-power tech.
• Jobs Created: 150.
• Partnerships: Texas Tech College of Engineering, South Plains College, and others.
