Lumentum CEO Michael Hurlston has warned that the supply-demand gap for indium phosphide (InP) has now surpassed that of DRAM and NAND, making it one of the most critical constraints on AI data center optical interconnect expansion.

Despite operating multiple InP wafer fabrication facilities, Lumentum continues to face widening supply shortages as customer demand outpaces production. Orders that once numbered in the hundreds for telecom customers have surged to hundreds of millions of devices, driven by NVIDIA and hyperscale data center operators.

As A…