capexScore 50/100Watch
Coherent capex surge: $1.1B invested in FY2026, targeting Sherman TX facility expansion with $50M CHIPS Act LOI and government partnership.
“Additions to property, plant & equipment (1,102.9) [millions]... Signed letter of intent for up to $50M in CHIPS Act funding, building on $20M previously provided through Texas Semiconductor Innovation Fund and the Sherman Economic Development Corporation.”
Why it matters
Coherent is deploying $1.1B capex in FY2026 (vs $440M in FY2025, 2.5x increase) to expand U.S. manufacturing capacity, heavily subsidized by U.S. government grants. This signals a structural shift toward onshoring optical semiconductor production for AI infrastructure.
Investment implication
Equipment vendors (sputtering, epitaxy, test, packaging), logistics, and specialized materials suppliers serving semiconductor fabs will see sustained demand. Regional suppliers near Sherman, TX may benefit from supply chain consolidation.