Lumentum Boosts U.S. Manufacturing with Major Expansion for AI-Driven Co-Packaged Optics and High-Power Lasers

Lumentum Holdings Inc., a global leader in optical and photonic technologies, has announced a major expansion of its U.S.-based semiconductor manufacturing operations, marking a strategic move to bolster America’s role in the global AI infrastructure supply chain. The investment will significantly increase capacity at Lumentum’s facility on Rose Orchard Way in San Jose, California, where the company designs and produces ultra-high-power (UHP) lasers—critical components in Co-Packaged Optics (CPO) platforms used in next-generation AI data centers. The expansion is expected to create new high-skilled engineering and manufacturing jobs, reinforcing domestic production capabilities for advanced optical technologies. Lumentum’s UHP lasers, built on indium phosphide semiconductor technology, are engineered for high reliability and low power consumption, making them essential for the high-speed, energy-efficient optical interconnects that power modern AI systems. “This investment underscores our leadership in photonic innovation and our dedication to strengthening U.S. manufacturing,” said Michael Hurlston, president and CEO of Lumentum. “By expanding our domestic capacity, we’re not only supporting a resilient AI infrastructure ecosystem but also reinforcing America’s global technological leadership.” Lumentum has long been a key supplier of high-performance optical components for telecommunications, data centers, and industrial applications. Its expertise in laser and photonic systems enables advanced capabilities across AI, machine learning, and real-time data processing. The company is currently collaborating with NVIDIA on cutting-edge networking solutions designed to meet the escalating demands of AI-driven data centers. “AI is transforming industries at an unprecedented pace, and with it comes a growing need for high-performance, energy-efficient optical interconnects,” said Gilad Shainer, senior vice president of Networking at NVIDIA. “We’re working closely with innovators like Lumentum to deliver the power efficiency, scalability, and network resilience needed for the AI infrastructure of tomorrow.” Lumentum (NASDAQ: LITE) is headquartered in San Jose, California, with research, development, manufacturing, and sales operations around the world. The company designs and manufactures a broad portfolio of optical and photonic products that are integral to telecom, enterprise, and data center networks. Its laser technologies also enable advanced applications in 3D sensing, manufacturing, and beyond. For more information, visit www.lumentum.com and follow the company on Bluesky, Facebook, Instagram, LinkedIn, X, and YouTube.