A proposed $50 million CHIPS Act award adds federal backing to Coherent’s photonic chip expansion as demand rises for high-speed AI data transmission and U.S. supply-chain capacity.
Coherent Corp is investing $650 million in a Texas photonics manufacturing facility as NVIDIA deepens its AI optics partnership with the company, and the expansion has now gained proposed federal support. Coherent said it signed a letter of intent with the U.S. Department of Commerce for up to $50 million in direct funding under the CHIPS and Science Act to expand advanced AI photonic chip manufacturing capacity. The company said the project would strengthen the U.S. photonic chip supply chain, support high-speed data transmission for AI infrastructure, and complement Nvidia's previously announced $2 billion investment in Coherent. The development underscores rising demand for photonics as AI systems require faster and more efficient data movement across servers and data centers, while also bolstering domestic semiconductor manufacturing.