Lumentum: Strong demand for optoelectronic components, 'sold-out capacity' situation will persist until 2029.

BlockBeats news, October 9 — As tech companies race to build faster AI data centers, Lumentum says its capacity for optoelectronic components is almost fully booked, a situation expected to persist until around 2029.

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 CEO Michael Hurlston said the company will be unable to meet about 70% of product demand next year, and 30% will still be unmet by 2028. Hurlston previously said the company was on track to sell out its capacity by 2028. "We are chasing as hard as we can, expanding capacity as fast as possible, but we are still far behind compared with customer demand," Hurlston said. "Our capacity is completely sold out, and there is no sign of it ending in the short term."