Lumentum Expands U.S. Manufacturing for AI-Driven Co-Packaged Optics.

Lumentum Holdings is expanding its US manufacturing facility for AI-driven co-packaged optics, generating additional high-skilled jobs and strengthening the US position in the global AI supply chain. The company is a primary supplier of ultra-high-power lasers, essential for CPO platforms. Lumentum is working with NVIDIA on advanced networking technologies for AI infrastructure. The investment reinforces America's role in global technology leadership.

Lumentum Holdings, a leading supplier of ultra-high-power lasers, has announced plans to expand its US manufacturing facility to focus on AI-driven co-packaged optics (CPO). This move is part of a broader strategy to strengthen the US position in the global AI supply chain and generate additional high-skilled jobs. The expansion will also support Lumentum's role as a primary supplier of essential components for CPO platforms.

The company's strategic partnership with NVIDIA on advanced networking technologies for AI infrastructure underscores the importance of this investment. By collaborating with NVIDIA, Lumentum aims to develop cutting-edge solutions that can meet the growing demand for high-speed, low-latency data transmission in AI-driven applications.

The expansion of Lumentum's manufacturing capabilities aligns with the broader trend of increased investment in AI and machine learning technologies. According to a recent report by ResearchAndMarkets.com, the global market for Pluggable Optics for Data Centers was estimated at US$5.6 Billion in 2024 and is projected to reach US$9.9 Billion by 2030, growing at a CAGR of 9.8% [1]. This growth is driven by factors such as the exponential growth in data traffic, the adoption of AI workloads, and the need for cost-effective network scaling.

Lumentum's focus on co-packaged optics is particularly relevant in the context of next-generation data centers. These data centers require agile, hot-swappable, and performance-optimized interconnect solutions to support the rapid growth in traffic and the evolving needs of AI/ML workloads. The company's investment in this area is poised to capitalize on the growing demand for high-speed, low-latency data transmission, which is a critical component of modern data center architecture.

In addition to its manufacturing expansion, Lumentum is also working to enhance its supply chain and ecosystem partnerships. By collaborating with other technology companies and industry players, Lumentum aims to create a robust ecosystem that can support the development and deployment of advanced networking technologies.

The investment by Lumentum Holdings in its US manufacturing facility for AI-driven co-packaged optics is a significant step forward in the company's strategy to lead the global AI supply chain. By generating additional high-skilled jobs and supporting the development of advanced networking technologies, Lumentum is positioning itself to play a key role in the future of AI and machine learning.

References:
[1] https://www.businesswire.com/news/home/20250801389696/en/Pluggable-Optics-for-Data-Centers-Business-Analysis-Report-2024-2030-Plug-Transmit-Scale---The-Modular-Backbone-Accelerating-High-Speed-Data-Center-Connectivity---ResearchAndMarkets.com