Per Woofun AI, Coherent has executed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to obtain up to $50 million in direct financial support under the CHIPS and Science Act. The capital is designated for scaling advanced manufacturing capabilities specifically for AI photonic chips, aiming to fortify the domestic supply chain.

This expansion addresses critical high-speed data transmission requirements within AI computing infrastructure, effectively mitigating communication bottlenecks associated with large-scale processing. The initiative aligns with Coherent’s strategic partnership with NVIDIA, which previously committed a $2 billion investment, to advance optical network upgrades and interconnect technologies for AI-centric 'data center factories.'