Coherent ramps InP capacity
Photonics leader ramps 6-inch InP production and prepares to launch its PhotonLink integrated optics platform at ECOC 2026.
Coherent has reported record quarterly revenue of $2.05 billion and set a new target of reaching $3 billion in quarterly sales within the next year, driven by accelerating demand for AI data centre infrastructure and optical connectivity.
The company is continuing to expand production of 6-inch indium phosphide (InP) wafers at its manufacturing facilities in Sherman, Texas, and Sweden.
According to CEO Jim Anderson, the transition from 3-inch to 6-inch production is progressing ahead of schedule, with output expected to double year-on-year by the end of the current quarter before doubling again by the end of 2027.
Higher-capacity production is also delivering improved device yields for lasers and photodiodes used in optical interconnects.
Anderson said AI data centres are rapidly transitioning from copper to optical connectivity, creating strong demand for Coherent's photonics portfolio.
The company expects new technologies, including co-packaged optics (CPO), near-packaged optics (NPO) and optical circuit switches (OCS), to become increasingly important as hyperscalers adopt more integrated optical architectures.
Coherent also confirmed it will unveil PhotonLink, its new integrated optics platform, at ECOC 2026 in Malaga.
The platform is designed to provide customers with a fully integrated optical solution, with initial commercial revenue expected before the end of the year.
For the quarter ending June 30, 2026, Coherent reported annual revenue of $7.12 billion, up 23% year-on-year, with growth driven primarily by AI-related data centre demand.
The company expects revenue to increase to approximately $2.3 billion in the current quarter as production capacity continues to expand.
