Lumentum CEO Flags Tighter Indium Phosphide Shortage Than Memory As AI Rack Laser Demand Hits 8,000
Lumentum's chief executive officer said the industry shift from copper cabling to optical wiring for artificial intelligence server racks will trigger a supply bottleneck for indium phosphide. The optical upgrade requires approximately 8,000 lasers per scale-up rack, a volume the company expects to make the semiconductor material shortage more acute than the current memory chip deficit.
First commercial deployments of the optical architecture are scheduled for the second half of 2027. Manufacturers are simultaneously developing vertical-cavity surface-emitting laser alternatives to meet scale-up needs, with additional industry momentum expected through 2028 and 2029. The supply constraint will impact laser fabrication, optical engine production, and broader artificial intelligence data center infrastructure buildouts.
From the sources (4 posts)
@zephyr_z9That's why VCSEL's are being developed for scale-up 2028-29 will be interesting
@photoncapInP has been becoming the chokepoint. $LITE Lumentum’s CEO has now said it directly and the implications extend across lasers, optical engines, and AI infrastructure. I’m working with another amazing investment and research team on a deep
@photoncapwhat a nice read $LITE
@firesidealpha$LITE's CEO on the shift from copper to optics inside the AI rack: One scale-up rack needs ~8,000 lasers, and he thinks the indium phosphide shortage gets tighter than the one in memory. First deployments in 2H'27.