en.Wedoany.com Report on Mar 28th, Optical technology company Lumentum, backed by NVIDIA, has announced the construction of a 240,000-square-foot manufacturing facility in Greensboro, North Carolina, USA, to expand production capacity for AI optical interconnect components.

The site was acquired from chipmaker Qorvo for approximately $18 million, with the transfer completed on March 17. Currently operating as a semiconductor facility, Lumentum plans to convert it into a base for producing indium phosphide (InP) lasers and ultra-high-power (UHP) solutions, products used in NVIDIA's Spectrum-X and Quantum-X network switches. Production is expected to ramp up gradually by mid-2028.

As a customer of this facility, NVIDIA aims to strengthen its domestic supply chain. In early March of this year, NVIDIA invested approximately $2 billion in Lumentum. At the GTC conference, NVIDIA CEO Jensen Huang stated this is part of the supply chain efforts to "prepare for the company's growth." Debora Shoquist, NVIDIA's Executive Vice President of Operations, noted: "As AI workloads grow at an unprecedented rate, secure and reliable access to high-performance optical components is critical. Lumentum's investment in expanding U.S. manufacturing capacity enhances supply continuity, allowing us to confidently address the growing infrastructure demands."

Founded in 2015, Lumentum focuses on developing high-performance lasers and optical subsystems to enhance connectivity in data centers and telecommunications networks. Following NVIDIA's investment, the company showcased new heat-resistant optical interconnect products designed for AI networks at the recent OFC conference, including high-density vertical-cavity surface-emitting lasers (VCSELs). These aim to connect AI chips via optical links, overcoming the bandwidth and thermal limitations of traditional connections.

Lumentum CEO Michael Hurlston explained: "Our customers are building the infrastructure that will define the next computing era. Adding this InP manufacturing facility significantly expands our capacity, deepens our strategic partnerships, and ensures we can deliver the performance, reliability, and scale required for the AI revolution." The purchase agreement also includes transferring a workforce experienced in chip production to accelerate capacity expansion. North Carolina Secretary of Commerce Lee Lilley added: "I am grateful that Lumentum chose North Carolina for its next and largest U.S. semiconductor manufacturing facility. Having a robust semiconductor industry and a skilled workforce allows us to provide the top-tier talent needed by industry leaders like Lumentum to achieve their expansion goals in serving the rapidly growing advanced AI market."