The Information Machine

This is WILD!

Milk Road AI Twitter · Milk Road AI (@MilkRoadAI) · 2026-05-28

NVIDIA asked its supply chain to scale indium phosphide laser capacity 20x by 2030, but vendors only committed to 12x, leaving Datacom supply projected to remain 50% short of demand even after that expansion.

Open original ↗

Appears in

Extraction

Topics: ai-infrastructureoptical-networkingnvidiasupply-chain-constraintsdatacom

Claims

  • NVIDIA requested a 20x increase in InP laser capacity from its supply chain between 2025 and 2030.
  • Supply chain vendors pushed back and agreed only to a 12x capacity increase.
  • Even under the conservative 12x scenario, Datacom supply will remain approximately 50% below demand at the end of 2030.

Key quotes

Even the conservative scenario has Datacom supply still 50% behind demand exiting 2030, after a 12x increase in capacity.