Nvidia Supply Chain Gets A Boost As Coherent Expands Texas AI Manufacturing Facility - Yahoo Finance

On June 18, 2026, Coherent Inc. announced an expansion of its manufacturing facility in Sherman, Texas, aimed at strengthening a key component of NVIDIA Corp.'s artificial intelligence stack supply ch... Read original →

Coherent’s Sherman expansion isn’t just about scaling—it’s a strategic recalibration of the AI optical stack’s foundation. The world’s first high-volume 6-inch indium phosphide line directly enables NVIDIA’s next-gen platforms to meet surging demand for 800G/1.6T transceivers, accelerating their commercial deployment. Backed by CHIPS Act funding, this move systematically reduces U.S. reliance on Taiwan, China and Southeast Asia for compound semiconductor manufacturing. While upfront costs rise, long-term supply chain resilience improves markedly. Competitors like Lumentum now face intensified pressure, while firms in Hong Kong, China and Taiwan, China risk marginalization if they can’t master EUV-assisted InP processes. Within 18 months, expect tighter U.S. export controls on advanced lasers and new 'domestic content' rules for AI infrastructure, forcing hyperscalers to overhaul sourcing strategies.