Coherent (COHR) said Tuesday it has signed a letter of intent to receive up to $50 million in direct funding under a government program intended to expand semiconductor manufacturing in the US.

The company said the investment will support the expansion of its 6-inch Indium Phosphide semiconductor manufacturing facility in Sherman, Texas. When the project is completed, the company said it expects the Sherman site to create more than 1,000 jobs, including more than 550 direct advanced manufacturing, engineering, and technical positions.

Coherent said the expansion, which will be funded under the US Department of Commerce's CHIPS and Science Act, will double manufacturing production space and quadruple wafer production capacity.