Lumentum, a leading player in optical communications, is making a significant investment in the core hardware required for 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 components for AI data centers. NVIDIA has been confirmed as a customer for this facility. Lumentum plans to invest hundreds of millions of dollars into the project over the coming years, with production capacity expected to begin ramping up by mid-2028.
This strategic move highlights Lumentum's increasingly important role within the AI infrastructure supply chain. As major technology companies continue to invest heavily in AI computing power, demand for high-performance optical interconnect components has surged. This expansion plan is a direct response to this market opportunity.
The company has moved quickly to secure the manufacturing asset, acquiring the 240,000-square-foot facility from semiconductor manufacturer Qorvo. The site is currently operational and will be retrofitted to produce 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 setup. The project has also received policy support from the state of North Carolina and local economic development initiatives.
Lumentum plans to invest hundreds of millions of dollars into the facility over the next several years to gradually scale up production. In terms of employment, the company expects to retain and create over 400 manufacturing jobs, covering functions such as wafer process engineering, manufacturing technology, operations, supply chain, and quality management.
The expansion has received a significant endorsement, with NVIDIA set to be a customer for the manufacturing facility under a previously announced strategic cooperation agreement. This arrangement provides clear demand visibility for Lumentum's capacity expansion and reinforces the view of its central position in the AI optical interconnect supply chain.
Lumentum's CEO stated that their customers are building the infrastructure that will define the next computing era. He added that this new indium phosphide manufacturing facility will significantly expand their capacity, deepen strategic partnerships, and ensure they can deliver products with the performance, reliability, and scale required for the AI revolution.