Coherent: Indium Phosphide Capacity to Double, Data Center to Reaccelerate to 10% QoQ

Coherent is not nearly as flashy as Lumentum when it comes to revenue growth or even data center growth, yet the company is sitting in a prime position moving through 2026 as the industry navigates extremely tight indium phosphide (InP) capacity coupled with elevated demand for InP-based EML lasers. This is because Coherent is preparing to double indium-phosphide capacity via a multi-faceted expansion plan with multiple facilities ramping output in unison, while shifting to a larger wafer size that can deliver 4X output per wafer at half the cost.

Members receive institutional-grade context on positioning, risk, and catalysts — not just headlines.

Our research team publishes deep dives on sector themes, earnings setups, and portfolio actions as conditions change.