Coherent Corp (COHR) has announced a strategic transition to 6-inch Indium Phosphide (InP) wafers, marking a significant upgrade in its manufacturing process. This shift is expected to reduce die costs by approximately 60% while simultaneously increasing production capacity by four times. The move comes as a direct response to the surging demand for AI networking solutions and the expansion of global data center infrastructure. By optimizing its production scale, the company aims to improve profit margins and maintain a competitive edge in the high-growth semiconductor market. Analysts view this development as a strong fundamental driver for Coherent's long-term financial outlook and operational efficiency amid the ongoing AI boom.
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