Lumentum and Largan Precision expand AI optical component footprints

Lumentum has reported record-breaking financial results driven by the surge in AI data center demand. For its fourth fiscal quarter of 2026, the company achieved revenue of $1.006 billion, a 109.3% year-on-year increase, marking its first quarter to exceed the $1 billion threshold. Non-GAAP gross margin rose to 50.4%, up from 37.8% in the same period last year.

The growth is fueled by high-speed optical module components, specifically EML laser chips used in 800G and 1.6T modules. Lumentum noted that demand for ultra-high-power lasers is accelerating, leading to supply shortages. The company also confirmed its first order for External Laser Source (ELS) modules, targeting delivery in the second half of 2027 to support Near-Package Optics (NPO) architectures.

In Taiwan, optical giant Largan Precision is aggressively pivoting toward Co-Packaged Optics (CPO) to establish a second growth curve. Following challenges in the smartphone market, the company is investing heavily in automation and new production facilities. Largan aims to complete its first automated pilot line for FAU (Fiber Array Unit) by September, leveraging its precision alignment expertise to enter the semiconductor-driven optical interconnect market.