Lumentum Holdings Inc. (NASDAQ: LITE) announced plans to establish a manufacturing facility in Greensboro, North Carolina, to produce indium phosphide-based optical devices for AI data centers.

The company acquired the 240,000-square-foot facility from semiconductor maker Qorvo. The site is operational and will be retrofitted to manufacture continuous wave and ultra-high-power lasers using 6-inch InP wafers. Production is expected to ramp in mid-2028.

NVIDIA will serve as a customer of the facility through previously announced strategic agreements with Lumentum. The purchase agreement includes transfer of an experienced workforce from the previous operation.

Lumentum plans to invest hundreds of millions of dollars over several years to scale production at the site. The company expects to preserve and create over 400 manufacturing jobs, including roles in fabrication process engineering, manufacturing technicians, operations, supply chain, and quality functions.

"Our customers are building the infrastructure that will define the next era of computing," said Michael Hurlston, Chief Executive Officer of Lumentum. "Adding this new InP manufacturing facility significantly expands our capacity, deepens our strategic partnerships, and ensures we can deliver the performance, reliability, and scale required for the AI revolution."

The facility represents an expansion of Lumentum's domestic manufacturing capabilities for optical components used in cloud and AI infrastructure networks. The project received support from state and local economic development programs.

Lumentum develops optical and photonic technologies for data center connectivity, telecommunications networks, and industrial applications. The San Jose, California-based company operates research, manufacturing, and sales facilities globally.