Lumentum Expands US-Based Semiconductor Facility for Ultra-High-Power Laser Production

Lumentum Holdings is expanding its semiconductor facility in San Jose to increase production of indium phosphide-based ultra-high-power lasers. The lasers are key components in co-packaged optics platforms for low-power, highly resilient optical networking systems in AI data centers. The expansion supports a robust AI infrastructure supply chain and is part of Lumentum's collaboration with NVIDIA on advanced networking technologies.

Lumentum Holdings Inc. (NASDAQ: LITE) has announced a significant expansion of its semiconductor facility in San Jose, California, aimed at increasing the production of indium phosphide-based ultra-high-power (UHP) lasers. The expansion is part of the company's broader strategy to support the growing demand for high-performance, energy-efficient optical interconnects in AI data centers.

The UHP lasers, designed and manufactured at Lumentum's Rose Orchard Way facility, are essential components in co-packaged optics (CPO) platforms. These platforms are crucial for low-power, highly resilient optical networking systems that underpin modern AI data centers. The expansion is expected to generate additional high-skilled engineering and manufacturing jobs, further strengthening the U.S. position in the global AI supply chain [1].

Michael Hurlston, president and CEO of Lumentum, highlighted the strategic significance of the investment. "This investment is a testament to our leadership in laser and photonic technologies," he said. "Our commitment to expanding domestic manufacturing not only supports a robust AI infrastructure supply chain but also reinforces America’s role in global technology leadership."

Lumentum's UHP lasers, backed by decades of experience in high-power telecom lasers, support low-power, highly resilient optical networking systems. The company's collaboration with NVIDIA on advanced networking technologies for AI infrastructure underscores its commitment to innovation and technological leadership. Gilad Shainer, senior vice president of Networking at NVIDIA, noted the growing demand for such technologies, stating, "With AI transforming every industry, the demand for high-performance, energy-efficient optical interconnects is growing rapidly" [1].

This expansion is part of Lumentum's broader mission to enable the world’s most advanced systems, meeting the evolving demands of artificial intelligence, machine learning, and real-time data processing. The company's optical components and subsystems are integral to virtually every type of telecom, enterprise, and data center network.

References:
[1] https://www.marketscreener.com/news/lumentum-expands-u-s-manufacturing-for-ai-driven-co-packaged-optics-ce7c5edcd981f423