NewsUnverified
Lumentum manufactures InP EML chips for optical communications in Japan
Thursday, April 2, 2026 at 10:22 PM
Lumentum's Indium Phosphide (InP) Electro-absorption Modulated Laser (EML) chips are currently manufactured in Japan. These components are critical for high-speed optical transceivers used in AI data centers.
Context
As of April 2026, Lumentum remains a dominant leader in the photonic integrated circuit market, controlling approximately 50-60% of the global supply for Indium Phosphide (InP) Electro-absorption Modulated Lasers (EMLs). These chips are the critical "bottleneck" components required for 800G and 1.6T optical transceivers used in AI data centers. To maintain its market lead and meet a supply-demand gap of nearly 30%, the company leverages a vertically integrated manufacturing footprint that includes internal wafer fabs in Sagamihara and Takao, Japan. This Japanese manufacturing base is essential for the multi-stage epitaxial growth and precision fabrication required to support 200 Gbps per lane designs now in high-volume production. Recent financial reports show Lumentum's quarterly revenue reached $665M, representing a 65% year-over-year increase driven by record EML demand. The company has aggressively expanded its production capacity by 40% to fulfill long-term agreements that are already locked through the end of 2027. This strategic focus on high-reliability, in-house fabrication in Japan and the UK allows the firm to capture premium pricing as hyperscale customers prioritize uptime in massive GPU clusters.
Related Companies
L
Lumentum
LITE