Lumentum Holdings Inc. (NASDAQ: LITE) has announced plans to establish a new U.S. manufacturing facility in Greensboro to produce advanced optical components for next-generation AI data centers. The 240,000-square-foot facility will focus on manufacturing indium phosphide (InP)-based devices, including continuous wave (CW) and ultra-high-power (UHP) lasers, which are critical to high-speed optical networking in large-scale AI infrastructure.
The site, acquired from Qorvo, is already operational and will be retrofitted to support Lumentum’s advanced photonics production. The acquisition includes the transfer of an experienced workforce, enabling the company to accelerate its capacity expansion and streamline the production ramp-up process. The facility is expected to scale manufacturing using 6-inch InP wafers, with production ramp anticipated by mid-2028.
A key customer for the new facility will be NVIDIA, which will leverage the site’s output to support its growing AI infrastructure requirements. The collaboration builds on existing strategic agreements between the two companies and is expected to strengthen domestic supply chains for high-performance optical components. In addition to NVIDIA, Lumentum plans to serve a broader base of hyperscale cloud and AI infrastructure providers through the facility.
The investment reflects Lumentum’s broader strategy to expand its U.S. manufacturing footprint, improve supply chain resilience, and support the increasing demand for optical interconnect technologies driven by AI workloads. As data centers scale to handle more complex and data-intensive applications, the need for high-performance, energy-efficient optical components has become a critical factor in maintaining network performance and reliability.
Lumentum plans to invest hundreds of millions of dollars over the coming years to enhance the facility’s manufacturing capabilities. The project is expected to preserve and create more than 400 jobs across a range of functions, including engineering, manufacturing, operations, supply chain, and corporate support roles. State and local economic development programs have supported the initiative, highlighting the region’s growing importance in advanced manufacturing.
Industry stakeholders have emphasized the significance of the investment in strengthening U.S.-based semiconductor and photonics production. The availability of a skilled workforce and robust infrastructure in North Carolina played a key role in the site selection.
