Woodside Capital flags indium phosphide shortage as key constraint on AI optics supply
LITE•Woodside Capital Partners flagged indium phosphide shortages as a key constraint, with external modulated laser demand more than 30% above supply and Lumentum shipping over 30% below demand.
1. Laser supply constraints
Woodside Capital Partners said indium phosphide shortages are constraining optical networking supply, with demand for external modulated lasers more than 30% above supply and Lumentum shipping over 30% below demand. It projected Lumentum’s newest indium phosphide fab in Greensboro, North Carolina, is about two years from production. The analysis cited more than 120 million OSFP shipments this year and projected 200 million in 2028, while describing co-packaged optics as a 2028 story.
