SHERMAN, Texas (KXII) - Coherent and Nvidia broke ground Tuesday on an expansion that will quadruple wafer production capacity.

Coherent signed a letter of intent with the U.S. Department of Commerce for the direct funding, which will support the expansion of the world's first and largest volume production site for six-inch indium phosphide manufacturing, according to Jim Anderson, CEO of Coherent.

The expansion will double manufacturing production space."I think today marks a really important milestone, not just for Coherent, but for American manufacturing and for the future of AI infrastructure," Anderson said.