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17 Dec 2025
Automotive lidar pioneer recently lost a major supply deal with lead customer Volvo.
Luminar Technologies, the US-based company that pioneered the deployment of 1550 nm wavelength lidar sensors for automotive applications, has filed Chapter 11 bankruptcy proceedings in a Texas court.
The move comes less than a month after key customer Volvo terminated a supply deal with the Orlando-headquartered firm. The auto giant had previously selected Luminar’s “Iris” lidar technology as a standard feature on its EX90 electric vehicles, and had been planning to do the same with its new ES90 models.
Just prior to initiating bankruptcy proceedings Luminar agreed to sell its photonics business, known as Luminar Semiconductor (LSI), to Quantum Computing, Inc (QCi), in an all-cash deal worth $110 million.
That separation means that the photonics business will not be a debtor in Luminar’s Chapter 11 cases, and its operations should be unaffected by the bankruptcy filing while Luminar seeks a buyer for the remaining lidar operations.
The firm's photonics unit comprises expertise gained through a series of acquisitions in recent years, including the 1550 nm laser producer Freedom Photonics, photodiode specialist Optogration, and chip design firm Black Forest Engineering.
TFLN foundry
Luminar CEO Paul Ricci, who took over from company founder Austin Russell earlier this year following the latter’s shock resignation, said in a release that the latest developments would provide Luminar with the best opportunity to maximize value for all of its stakeholders.
“Over the past six months, we have taken meaningful steps to drive operational discipline, streamline our cost structure, and sharpen our strategic direction, but our legacy debt obligations and the pace of industry adoption have challenged our ability to operate the business in a sustainable way."
Luminar’s most recent financial statement, posted November 13, indicated that the company had long-term debts of $429 million offset by total assets of only $203 million as Ricci and his team sought a series of forbearance agreements with creditors.
“After a comprehensive review of our alternatives, the board determined that a court-supervised sale process is the best path forward,” Ricci added.
During the Chapter 11 process Luminar expects to continue operating its business, and has filed a number of customary “First Day Motions” that should allow it to pay employee wages and benefits, and honor commitments to customers, suppliers, and other partners.
Focused on the production of thin-film lithium niobate (TFLN) devices for applications in integrated photonics and quantum optics, QCi recently raised $500 million in a private placement of stock by unspecified investors.
Commenting on the LSI deal, its CEO Yuping Huang said: “There is clear strategic alignment and shared vision between our organizations, creating strong momentum from day one.
“Following the closing, we will move quickly to invest in and scale LSI’s existing business, while bringing our teams together to accelerate our quantum photonics roadmap.”
Earlier this year the Nasdaq-listed New Jersey startup opened up its TFLN foundry, which is located within Arizona State University’s Research Park in Tempe, and from where it aims to provide “transformative technologies” for applications in quantum computing, remote sensing, and quantum imaging.
QCi is also collaborating with POET Technologies on the development of 400 Gb/s per lane TFLN modulators for 3.2Tb/s optical data transceivers that will be aimed at applications in AI systems networks and data center hyperscalers.
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