Lumentum said demand for its photonic components has surged as technology companies race to build faster AI data centers, leaving the company’s production capacity almost fully booked through around 2029. Earlier this year, Nvidia invested $2 billion in the company. Lumentum is a key supplier of advanced indium phosphide devices used to support high-speed cloud computing and data transmission. Chief Executive Officer Michael Hurlston said the company expects to be unable to meet about 70% of product demand next year, with roughly 30% of demand still going unmet through 2028. Hurlston had previously said the company was on track to have its capacity sold out before 2028. He said Lumentum is moving as quickly as possible to expand output, but demand from customers remains far ahead of what the company can supply, and there is no near-term end in sight to the capacity crunch.
On Oct. 9, BlockBeats reported that Lumentum said production capacity for its photonic components is almost fully booked and that the situation is likely to last until around 2029, as technology companies race to build faster AI data centers.
Earlier this year, Nvidia invested $2 billion in the company. Lumentum mainly supplies advanced indium phosphide devices, which help enable high-speed cloud computing and data transmission.
Lumentum sees no near-term relief in supply constraints
Lumentum Chief Executive Officer Michael Hurlston said the company will be unable to meet about 70% of product demand next year. He added that 30% of demand will still go unmet through 2028.
Hurlston had previously said the company was on track to have its capacity sold out before 2028.
In his words: "We are working flat out and expanding capacity as fast as we can, but we are still far behind customer demand. Our capacity is fully sold out, and we do not see any sign of that ending in the near term."
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