Coherent Secures Up to $50 Million in Direct Funding to Expand AI Photonic Chip Production Capacity

Odaily Odaily reports that Coherent has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce, aiming to secure up to $50 million in direct funding under the CHIPS and Science Act. This funding is intended to expand advanced manufacturing capacity for AI photonic chips. Coherent stated that this expansion will strengthen the U.S. domestic photonic chip supply chain, support the high-speed data transmission demands of AI computing infrastructure, alleviate communication bottlenecks caused by large-scale AI computing, and collaborate with NVIDIA to drive the upgrade of optical networks and interconnect technologies for AI-focused "data center factories." Previously, NVIDIA announced a $2 billion investment in Coherent. (Semiconductor-Today)