Lumentum designs and manufactures optical and photonic components and systems that transmit data through fiber optic networks. The company makes the hardware—including laser chips, transceivers, optical amplifiers, and switches—that moves light-based data within data centers and across telecommunications networks. Its core products are InP laser chips, which serve as light sources for high-speed optical transceivers used in AI infrastructure. Lumentum also produces pump lasers to amplify signals over long distances and narrow linewidth lasers for coherent optical links. The business operates through two categories: Components and Systems. The Components segment provides building blocks like laser chips and wavelength management subsystems. The Systems segment offers integrated solutions such as 800G and 1.6T transceivers, optical circuit switches, and industrial lasers for material processing. Lumentum sells to hyperscale cloud providers, AI infrastructure companies, and network equipment manufacturers. Its customer base is highly concentrated, with a small number of entities accounting for a large portion of sales. The business model relies on transactional unit sales, with proprietary laser chip manufacturing serving as the primary driver of profitability. Lumentum's strategy centers on expanding chip production capacity and vertically integrating these components into finished optical modules. To mitigate demand cyclicality and fund fab expansions, Lumentum uses long-term agreements and take-or-pay arrangements with customers.