Lumentum is expanding U.S.-based manufacturing capacity for ultra-high-power (UHP) lasers used in Co-Packaged Optics (CPO) platforms, a key technology for next-generation AI data centers. The company will increase production at its Rose Orchard Way semiconductor facility in San Jose, California, creating additional high-skilled engineering and manufacturing jobs. The expansion aims to strengthen the U.S. position in the global AI supply chain while enhancing network resiliency and energy efficiency in large-scale AI deployments.
The UHP laser is an indium phosphide–based component designed for low-power, high-reliability optical networking in AI workloads. Lumentum brings decades of telecom laser expertise to the product, positioning it for AI infrastructure growth alongside partners like NVIDIA. CPO technology integrates optical I/O directly with switch ASICs to reduce power consumption and improve bandwidth density—critical in scaling AI clusters.
Lumentum’s photonic technologies support applications spanning telecommunications, hyperscale data centers, and industrial systems. The company is collaborating with NVIDIA on advanced optical networking for AI “factories,” aiming to deliver improved power efficiency and scalability. This investment adds to broader U.S. efforts to secure domestic production of strategic AI-enabling components.
• Expansion focuses on U.S. production of ultra-high-power indium phosphide lasers for CPO platforms
• Facility: Rose Orchard Way semiconductor plant in San Jose, California
• Target markets: AI data centers, telecom, industrial photonics
• Collaboration: Working with NVIDIA on energy-efficient, resilient AI network infrastructure
• CPO integration expected to lower power use and boost bandwidth density in AI systems
“This investment is a testament to our leadership in laser and photonic technologies,” said Michael Hurlston, president and CEO of Lumentum. “Our commitment to expanding domestic manufacturing not only supports a robust AI infrastructure supply chain but also reinforces America’s role in global technology leadership.”
🌐 Why it Matters
Co-Packaged Optics is becoming a cornerstone of AI data center design, driven by the need for higher bandwidth at lower power. Lumentum’s U.S.-based laser production helps reduce supply chain risk, aligns with national tech security priorities, and supports NVIDIA’s vision for highly efficient AI “factories.” This move reflects a broader industry trend toward domestic production of critical photonics for AI and cloud networking.
Earlier this year, Lumentum introduced new indium phosphide (InP) photonic chips enabling 400 Gbps‑per‑lane and 200 Gbps‑per‑lane optical links, plus ultra‑high‑power lasers for co‑packaged optics. Demonstrations included a 448 G EML (224 GBaud PAM4) and a 450 G PAM4 DFB‑MZI laser. The 200 G lane products offer improved power efficiency and integration, and the 1310 nm DFB lasers feature in NVIDIA’s Spectrum‑X and Quantum‑X platforms.
At OFC 2025, the consortium demonstrated 448 Gbps per‑lane transmission using 224 GBaud PAM4 with Lumentum’s InP externally modulated laser. They also generated 240 GBaud PAM4, advancing toward 3.2 T optical interfaces for AI/ML data centers. This showcases the scalability and energy‑efficiency advances critical for future infrastructure.
