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Applied Optoelectronics Wins $20.9 Million Texas Grant for Sugar Land AI Optics Expansion

The award backs a plan to build one of the largest U.S. outputs of optical links for AI servers.

Overview

  • Applied Optoelectronics, which received the grant Wednesday, will use the $20.85 million Texas Semiconductor Innovation Fund award to expand production in Sugar Land.
  • The plan adds a 210,000-square-foot facility next to its headquarters to make high-speed optical transceivers that move data between AI data center racks.
  • State officials described the broader project as more than $279 million in capital investment and said it should create about 500 jobs in the region.
  • Shares of AOI rose about 11% after the grant announcement, reflecting investor optimism about the expansion.
  • Recent orders from a hyperscale customer totaling $124 million since mid-March and added Pearland space of about 388,000 square feet signal demand that could fill the new lines.