Lumentum optical component capacity sold out into 2029, CEO Hurlston says
In short
Lumentum CEO Michael Hurlston said on Friday that the company's optical component capacity is sold out into 2029, with demand driven by technology companies building high-speed AI data centres. He said about 70% of demand for some products will still go unmet next year, and some products will have a 30% gap through 2028. Nvidia invested $2 billion each in Lumentum and its competitor Coherent earlier this year.
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Lumentum Holdings Inc., a US optical communications company headquartered in San Jose, California, has sold out its optical component capacity into 2029, chief executive Michael Hurlston said in an interview in Tokyo on Friday. 36Kr, citing Sina Finance, reported that capacity is almost entirely sold out with orders covering through 2029, while CLS, a later 36Kr report and Yicai said capacity through early 2029 is entirely sold out. [ 1 , 2 , 3 , 4 ]
Hurlston said about 70% of demand for some products will still go unmet next year, and some products will have a 30% demand gap through 2028. 36Kr reported that the demand is driven by technology companies racing to build high-speed AI data centres, and that the company mainly makes advanced indium phosphide devices supporting high-speed cloud computing and data transmission. Earlier this year Nvidia invested $2 billion each in Lumentum and its competitor Coherent, 36Kr reported. [ 1 , 2 , 3 ]
Why it matters
A supplier of optical components for high-speed cloud computing and data transmission reporting multi-year capacity shortages points to continued constraints on the build-out of AI data centres. Chinese business and tech outlets picked up the comments the same day, reflecting interest in the optical communications supply chain.
Key facts
- Lumentum CEO Michael Hurlston said on Friday that the company's optical component capacity is sold out, with 36Kr saying orders cover through 2029 and CLS, 36Kr and Yicai saying capacity through early 2029 is sold out. [ 1 , 2 , 3 , 4 ]
- Hurlston said about 70% of demand for some products will still go unmet next year. [ 1 , 2 , 3 ]
- Hurlston said some products will still have a 30% demand gap through 2028. [ 1 , 2 , 3 ]
- Demand is driven by technology companies racing to build high-speed AI data centres, 36Kr reported. [ 1 ]
- Earlier this year Nvidia invested $2 billion each in Lumentum and its competitor Coherent, 36Kr reported. [ 1 ]
- Lumentum, headquartered in San Jose, California, mainly makes advanced indium phosphide devices supporting high-speed cloud computing and data transmission; Hurlston spoke in an interview in Tokyo. [ 1 ]
Confirmed by several sources
Still unclear
- Whether capacity is fully sold out through early 2029 or nearly sold out with orders covering 2029. 36Kr's first report, citing Sina Finance, said capacity is almost entirely sold out with orders covering through 2029; CLS, 36Kr's later report and Yicai said capacity through early 2029 is entirely sold out.
- Nvidia's $2 billion investments in Lumentum and Coherent. Reported only by 36Kr, citing Sina Finance.
- Hurlston said about 70% of demand for some products will go unmet next year, and some products will have a 30% demand gap through 2028. Reported by a single source so far
What local media are saying
Timeline, local time
- 36Kr reports, citing Sina Finance, that Lumentum's optical component capacity is almost sold out with orders through 2029. [ 1 ]
- CLS reports Hurlston said capacity through early 2029 is sold out. [ 2 ]
- 36Kr republishes the CLS report. [ 3 ]
- Yicai reports Lumentum's early-2029 capacity is sold out. [ 4 ]