Lumentum optical parts booked through early 2029

Hurlston discussed demand from technology companies seeking faster AI data centers in an interview in Tokyo on Friday.[1] He said Lumentum could not meet about 70% of demand for some products through the following year, and would be unable to meet 30% of demand for some other products through 2028.[1] Those figures describe shortages for particular products, rather than a single shortfall rate across the company’s entire portfolio. The broader supply picture is that the optical components Bloomberg reported on were sold out through early 2029.[1]

Hurlston said Lumentum was trying to add capacity quickly but remained far behind customer demand, with no end in sight to the sellout.[2] The company said it had increased production at its Tokyo-area factory twelvefold over the previous two years and planned to invest at least $350 million in that site and a neighboring facility.[2] It had also added capacity at its Caswell facility in England.[2] Hurlston said hyperscalers were willing to put money behind capacity and that Lumentum would like to add more capability in the next year.[2]

The capacity outlook matters for procurement and planning because building new production capacity for companies such as Lumentum takes three to five years, Bloomberg reported.[2] Six months earlier, Hurlston had said Lumentum expected its capacity to be fully committed by 2028; the newer report described components booked through early 2029.[2][1] Lumentum supplies indium phosphide devices used in high-speed cloud computing and data transmission.[1] The reported constraints therefore affect parts used in data infrastructure, while the company’s expansion plans do not by themselves establish when supply will catch up.

Nvidia announced multiyear strategic agreements with Lumentum to support advanced optics innovation.[3] The nonexclusive agreement includes a multibillion-dollar purchase commitment and future capacity access rights for advanced laser components.[3] Nvidia’s $2 billion investment is intended to support research and development, future capacity and operations as Lumentum builds U.S. manufacturing capabilities in a new fab.[3] Bloomberg also reported that a possible U.S. ban on new Chinese optical transceiver models could deepen the supply crunch, and that Lumentum and Coherent would not be able to fill the gap left by Chinese manufacturers such as Innolight.[2]