InP Laser Supply Gap Exceeds Memory Shortage, Optical Bottlenecks Highlighted

Lumentum CEO warns InP laser supply may fall 30% short of AI data center demand, surpassing memory chip constraints and signaling critical optical communication bottlenecks.

Woofun AI notes that Lumentum CEO Michael Hurlston warned the indium phosphide (InP) laser supply chain for AI data centers faces a more severe shortage than memory chips. Despite operating five InP wafer fabs, shipments could miss customer demand by over 30%, creating a critical bottleneck in optical communication components.

Serenity identified current pressure in the EML segment but warned the shortage could spread. He maintains a bullish stance on optical communication supply chain investments, monitoring Applied Optoelectronics (AAOI), Sivers Semiconductors (SIVE), Lumentum (LITE), and Coherent (COHR). Rising AI capex is driving repricing for previously undervalued optical modules and lasers, with InP supply potentially limiting AI computing expansion.