Applied Optoelectronics Expands Sugar Land, Texas, Production Operations

Area Development News Desk

05/04/2026

Optical networking manufacturer Applied Optoelectronics, Inc. (AOI) plans to expand its operations in Sugar Land, Texas. The $279 million project is expected to create 500 jobs.

The investment will include the construction of a new 210,000-square-foot facility to increase production of semiconductor chips and optical transceivers used in high-speed networking and AI data center infrastructure. Operations are scheduled to begin by Summer 2026.

“We are proud to partner with the State of Texas to expand our homegrown manufacturing,” said Stefan Murry, Chief Financial Officer and Chief Strategy Officer of AOI. “This investment will increase production, create high-quality jobs, and help define the future of AI data center infrastructure.”

To support the project, AOI was awarded a $20.85 million grant from the Texas Semiconductor Innovation Fund. Additional support includes a $2 million local incentive package from the City of Sugar Land, with assistance from Fort Bend County, tied to job creation and long-term investment.

“Texas is leading America’s resurgence in advanced manufacturing,” noted Governor Greg Abbott. “This investment will create hundreds of high-skilled jobs and strengthen our leadership in semiconductor innovation.”

Applied Optoelectronics, Inc. is a manufacturer of fiber-optic networking products used in data centers, telecommunications, and cable broadband networks, producing lasers, transceivers, and optical components for high-speed data transmission. The company’s operations include design, manufacturing, and assembly of optical communication equipment.

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