Lumentum is investing hundreds of millions of dollars to bet on the AI laser track, quietly deploying next-generation optical devices for AI data centers.
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US optical communications leader Lumentum is making a major investment in the core hardware segment of AI data center infrastructure.
The company announced the acquisition of a large manufacturing facility in Greensboro, North Carolina, dedicated to producing indium phosphide–based optical devices for AI data centers. NVIDIA has confirmed that it will be a customer of this facility. Lumentum plans to invest several hundred million dollars into the project over the coming years, with production capacity expected to ramp up by mid-2028.
This move highlights Lumentum’s increasingly strategic position in the AI infrastructure supply chain. As tech giants continue to ramp up investments in AI computing power, demand for high-performance optical interconnection components is surging. This expansion plan is a direct response to this market opportunity.
Quickly Securing Manufacturing Assets, Planning to Invest Hundreds of Millions
Lumentum acquired the 240,000-square-foot plant from semiconductor manufacturer Qorvo. The facility is already operational and will be transformed for the production of continuous-wave lasers and ultra-high-power lasers using 6-inch indium phosphide wafer technology.
The acquisition agreement also includes the transfer of an experienced workforce from the previous operator, which will help Lumentum save time on technology transfer and production line commissioning. The project has also received policy support from state and local economic development programs in North Carolina.
Lumentum plans to invest several hundred million dollars in the facility over the next few years to gradually expand production scale. In terms of employment, the company expects to retain and create more than 400 manufacturing jobs, covering wafer process engineering, manufacturing technology, operations, supply chain, and quality management functions.
NVIDIA Endorsement, Strategic Agreement Secures Key Customer
NVIDIA will become a customer of this facility through a previously announced strategic partnership agreement. This arrangement provides clear demand support for Lumentum’s capacity expansion and further reinforces its perceived core position in the AI optical interconnect supply chain.
Lumentum CEO Michael Hurlston stated:
"Our customers are building the infrastructure that will define the next era of computing. The addition of this indium phosphide manufacturing facility will greatly expand our capacity, deepen strategic partnerships, and ensure we can deliver products with the performance, reliability, and scale required for the AI revolution."
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