Coherent expands partnership with Apple for multiyear VCSEL supply agreement.

Coherent Corp. has entered a multiyear strategic supply agreement with Apple, expanding their partnership and continuing to produce VCSELs for iPhone and iPad devices. The agreement solidifies Coherent's role in powering Apple's innovations and highlights the strength of their partnership. The critical work is conducted at Coherent's Sherman, Texas facility, demonstrating the company's commitment to drive the industry's technology roadmap with leading scale, breadth of capabilities, and depth of innovative solutions.

Coherent Corp. (NYSE: COHR) has entered a new multiyear strategic supply agreement with Apple, further solidifying their partnership and continuing to produce vertical-cavity surface-emitting lasers (VCSELs) for iPhone and iPad devices. The agreement underscores Coherent's pivotal role in powering Apple's innovative features, such as Face ID, and highlights the strength of their collaborative efforts [1].

Under the new agreement, Coherent will continue to manufacture VCSELs at their state-of-the-art facility in Sherman, Texas. The facility features advanced 6-inch wafer compound semiconductor manufacturing capabilities, enabling the production of next-generation optoelectronic applications [2].

Jim Anderson, CEO of Coherent, expressed his pride in the partnership, stating, "This agreement is a testament to the strength of our partnership with Apple and our shared commitment to drive the industry’s technology roadmap with leading scale, breadth of capabilities, and depth of innovative solutions" [1]. Sabih Khan, Apple’s chief operating officer, noted that the partnership aligns with Apple's American Manufacturing Program and their $600 billion commitment to U.S. investment over the next four years [1].

The strategic partnership not only strengthens Coherent's financial position but also underscores Apple's commitment to onshoring manufacturing and innovation. This agreement is part of a broader trend where tech giants are increasing their investments in the U.S. to foster domestic innovation and job creation [2].

Coherent's robust financial health is evident in its strong liquidity metrics, as indicated by a current ratio of 2.47, which supports its operational capabilities [3]. The company's recent revenue growth, driven by increased demand for datacom transceivers, further solidifies its market position. S&P Global Ratings has revised its outlook on Coherent to stable from negative, affirming the company's 'BB-' issuer credit rating [3].

Coherent's Sherman facility in Texas plays a crucial role in producing the laser components that power some of Apple's most iconic innovations. This strategic partnership is a significant milestone for both companies, reflecting their shared vision of driving technological advancements and innovation [1].

References:
[1] https://www.globenewswire.com/news-release/2025/08/07/3129349/11543/en/Coherent-and-Apple-Expand-Strategic-Partnership-With-New-Multiyear-VCSEL-Agreement-in-Texas.html
[2] https://www.stocktitan.net/news/COHR/coherent-and-apple-expand-strategic-partnership-with-new-multiyear-0co8qzhnxywp.html
[3] https://www.investing.com/news/company-news/coherent-signs-multiyear-vcsel-supply-deal-with-apple-93CH-4177062