The U.S. Department of Commerce’s CHIPS Program Office announced a letter of intent with Coherent Corp. for up to $50 million in direct funding to expand indium phosphide semiconductor production in Sherman, Texas. The June 16 announcement targets a specialized but increasingly important part of the electronics supply chain: photonic devices used in high-speed optical interconnects for AI data centers, communications networks, and advanced computing systems.
Coherent says the project would double manufacturing production space and quadruple wafer production capacity at its Sherman facility. The company expects the expansion to create more than 1,000 jobs, including more than 550 direct advanced manufacturing, engineering, and technical roles.
For the electronics workforce, the announcement is a useful reminder that semiconductor growth is broader than leading-edge logic chips. AI systems also depend on optical components, materials, lasers, packaging, test, process control, and the technicians and engineers who can keep complex production lines running at scale.
The Sherman project also shows how workforce demand is moving closer to the full electronics manufacturing ecosystem. Cleanroom expansion and wafer fabrication equipment require operators, maintenance technicians, process technicians, quality specialists, engineers, and supervisors who understand both precision manufacturing and fast-changing digital infrastructure markets.
That creates an opening for workforce partners. Community colleges, technical programs, employers, and regional training networks will need to translate investments like this into visible career pathways, especially for roles that do not always require a four-year degree but do require strong technical preparation.
The practical takeaway is clear: as AI infrastructure grows, the workforce challenge is not limited to software or chip design. U.S. competitiveness will also depend on building the skilled manufacturing talent needed to produce the components that move data, power systems, and strengthen domestic supply chains.
Source Note
Based primarily on the U.S. Department of Commerce/NIST CHIPS Program Office announcement and Coherent’s June 16, 2026 release, with additional context from SIA and Associated Press reporting. Sources: NIST(Opens in a new tab/window), Coherent(Opens in a new tab/window), SIA(Opens in a new tab/window), AP News.