Nvidia-backed optical and photonic technologies developer Lumentum unveiled plans to build a 240,000-square-foot manufacturing facility in Greensboro, North Carolina.

The site was acquired from chipmaker Qorvo. Deeds filed with Guilford County show the property was signed over to Lumentum on March 17, in a deal that Trade Business Journal puts at around $18 million.

While the facility is currently operational as a semiconductor fab, Lumentum plans to retrofit the site to manufacture its indium phosphide (InP) lasers – which feature in Nvidia’s Spectrum-X and Quantum-X networking switches – and ultra-high-power (UHP) solutions.

Once retrofitted, Lumentum expects production at the Greensboro site to ramp around mid-2028.

Nvidia will serve as a customer of the facility, helping to bolster its on-shore supply chain. The tech giant invested some $2 billion in Lumentum in early March, with CEO Jensen Huang later saying at GTC that the deal was part of its wider supply chain efforts to “prepare our company for growth.”

“As AI workloads scale at an unprecedented pace, secure and reliable access to high-performance optical components is critical,” Debora Shoquist, Nvidia’s EVP of operations, noted. “Lumentum’s investment in expanded U.S. manufacturing capacity strengthens supply continuity and positions us to meet growing infrastructure demands with confidence.”

Founded in 2015, Lumentum develops high-performance lasers, modules, and optical subsystems designed to boost connectivity for use in data centers and telecom networks.

Following its Nvidia investment, the developer showcased new heat-resilient optical interconnects tailored for use in AI networks at the recent OFC conference. Lumentum’s high-density vertical-cavity surface-emitting lasers (VCSELs) are designed to connect AI chips via light while overcoming bandwidth and heat limitations of traditional connections, and provide a scalable optical platform for AI-scale architectures.

But to meet growing demand for its burgeoning product lines, the company’s Greensboro manufacturing move will look to “enhanc[e] supply chain resilience.”

“Our customers are building the infrastructure that will define the next era of computing,” Lumentum CEO Michael Hurlston explained. “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 purchase agreement also includes the transfer of a workforce experienced in chip production, a boon Lumentum said would accelerate capacity expansion.

“I am appreciative that Lumentum chose North Carolina for their next and largest U.S. semiconductor manufacturing plant,” North Carolina Commerce Secretary Lee Lilley added. “Having a strong semiconductor presence and a skilled workforce allows us to deliver the talent that industry leaders like Lumentum need to fulfill their expansion goals for serving the rapidly growing advanced AI market.”