Lumentum Invests Hundreds of Millions in AI Laser Track, Quietly Building Next-Generation AI Data Center Optical Devices

US-listed optical communications leader Lumentum is investing heavily in the core hardware track 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 it will be a customer for this facility. Lumentum plans to invest hundreds of millions of dollars in the project over the next few years, with production capacity expected to enter a ramp-up phase by mid-2028.

This move further highlights Lumentum's strategic position in the AI infrastructure supply chain. As tech giants continue to accelerate AI computing power construction, the demand for high-performance optical interconnect devices is soaring. This expansion plan directly addresses this market opportunity.

Quickly Securing Manufacturing Assets, Planning Multi-Hundred Million Dollar Investment

Lumentum acquired the 240,000-square-foot plant from semiconductor manufacturer Qorvo. The facility is currently operational and will be repurposed to produce continuous-wave lasers and ultra-high-power lasers using a 6-inch indium phosphide wafer process.

The acquisition agreement also includes the transfer of an experienced workforce from the previous operator, which will help Lumentum save time and cost in technology transfer and production line debugging. The project also benefits from policy support from North Carolina and local economic development initiatives.

Lumentum plans to invest hundreds of millions of dollars in the facility over the next few years to gradually expand production scale. On the employment front, the company expects to retain and create over 400 manufacturing positions, covering roles in wafer process engineering, manufacturing technology, operations, supply chain, and quality management.

NVIDIA Endorsement, Strategic Agreement Secures Key Customer

NVIDIA will be a customer of this manufacturing facility through a previously announced strategic cooperation agreement. This arrangement provides clear demand support for Lumentum's production expansion and further reinforces external perceptions of its 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. This new indium phosphide manufacturing facility will significantly expand our capacity, deepen our strategic relationships, and ensure we can deliver the performance, reliability, and scale required for the AI revolution."