Lumentum Holdings Inc. announced the construction of a 240,000‑square‑foot plant in Greensboro, North Carolina, dedicated to advanced indium‑phosphide laser devices that power AI data centers. The facility, acquired from Qorvo, will begin ramping production in mid‑2028.
The new plant will add capacity to address a 25‑30% undersupply of electro‑absorption modulated lasers (EMLs) and support the company’s strategic partnership with NVIDIA, which has committed to purchasing from the facility.
Lumentum plans to invest hundreds of millions of dollars over the next several years and expects the project to preserve and create over 400 U.S. manufacturing jobs.
The expansion aligns with Lumentum’s broader turnaround, following a 2025 fiscal year that saw net revenue of $480.7 million and GAAP net income of $213.3 million, a sharp reversal from a $252.5 million loss in FY2024. Non‑GAAP gross margin rose to 37.8% in Q4 FY2025 from 33.3% in Q3 FY2025, driven by higher datacom laser shipments and a favorable product mix.
Segment data show the Cloud and Networking division generated $424.1 million in Q4 FY2025, up 16% sequentially and 67% year‑over‑year, while the Industrial Tech segment posted $56.6 million, down 6% sequentially but up 6% year‑over‑year, underscoring the company’s focus on AI‑centric markets.
Management highlighted the facility’s role in securing supply‑chain resilience and onshoring critical manufacturing, noting that the expanded U.S. capacity will support NVIDIA’s AI infrastructure buildout and help Lumentum maintain pricing power in a high‑growth market projected to reach $90 billion by 2030.
The announcement has been well received by investors, with analysts noting the company’s strong financial performance and strategic positioning.
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