Press Releases April 16, 2026 08:00 PM

AOI Expands Its Houston-Area Footprint to 900,000 Square Feet to Increase Capacity and Support Future Growth

Applied Optoelectronics announces significant expansion of Houston-area manufacturing footprint to meet surging AI data center demand

By Marcus Reed AAOI

Applied Optoelectronics, Inc. is expanding its Houston-area facilities by adding two adjacent buildings in Pearland, Texas, increasing its manufacturing capacity by about 388,000 square feet. This move supports the company’s ambitious 2027 capacity targets and positions AOI to scale production of high-speed optical transceivers and laser fabrication to meet accelerating demand driven by AI infrastructure deployment.

AOI Expands Its Houston-Area Footprint to 900,000 Square Feet to Increase Capacity and Support Future Growth
AAOI

Key Points

  • AOI is expanding its Houston manufacturing footprint to 900,000 total square feet, including new acquisitions adding approximately 388,000 square feet.
  • The expanded capacity aims to scale production up to 700,000 units of 800G and 1.6T transceivers monthly and increase laser fabrication capacity by 350% by the end of 2027.
  • The expansion aligns with AOI’s strategic goal to become the premier high-volume U.S. producer of AI-focused data center optics, serving cloud computing and telecom sectors.

SUGAR LAND, Texas, April 17, 2026 (GLOBE NEWSWIRE) -- Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of advanced optical and HFC networking products powering AI, today announced plans to expand its Houston-area footprint through the addition of two adjacent buildings in Pearland, Texas, adding approximately 388,000 square feet of manufacturing capacity.

“By expanding our footprint now, we are ensuring we can meet accelerating customer demand and support the next wave of AI infrastructure deployments.”
“The demand for optical connectivity in data centers has exceeded our expectations,”
“We are focused on ensuring every critical function—from supply chain and manufacturing capacity to quality, reliability, and customer support—is positioned…”
“This expansion is aligned with the 2027 capacity targets we outlined on our most recent earnings call and represents the next step in our strategy to become…”
“By expanding our footprint now, we are ensuring we can meet accelerating customer demand and support the next wave of AI infrastructure deployments.”
“The demand for optical connectivity in data centers has exceeded our expectations,”
“We are focused on ensuring every critical function—from supply chain and manufacturing capacity to quality, reliability, and customer support—is positioned…”
“This expansion is aligned with the 2027 capacity targets we outlined on our most recent earnings call and represents the next step in our strategy to become…”
“By expanding our footprint now, we are ensuring we can meet accelerating customer demand and support the next wave of AI infrastructure deployments.”

The expansion builds on AOI’s existing U.S. operations, which include a 210,000-square-foot manufacturing facility currently under development near its Sugar Land headquarters, where the company operates 135,000 square feet of capacity, as well as a recently leased 154,000-square-foot building at Blue Ridge Commerce Center.

“The demand for optical connectivity in data centers has exceeded our expectations,” said Dr. Thompson Lin, Founder, Chairman, and CEO of AOI. “We are focused on ensuring every critical function—from supply chain and manufacturing capacity to quality, reliability, and customer support—is positioned to scale rapidly to meet this demand. With the acquisition of these properties, we will have the footprint to expand our capacity to produce up to 700,000 units of 800G and 1.6T transceivers per month in the Houston area, while also expanding our laser fabrication capacity by around 350% by the end of 2027.”

“This expansion is aligned with the 2027 capacity targets we outlined on our most recent earnings call and represents the next step in our strategy to become the premier high-volume U.S. producer of AI-focused data center transceivers and optics,” said Dr. Stefan Murry, Chief Financial Officer and Chief Strategy Officer. “By expanding our footprint now, we are ensuring we can meet accelerating customer demand and support the next wave of AI infrastructure deployments.”

Additional Resources:

  • AOI Optical Transceivers
  • AOI Newsroom

About AOI  
Applied Optoelectronics, Inc. (AOI) is a leading developer and manufacturer of advanced optical and HFC networking products that are the building blocks for AI datacenters, CATV and broadband fiber access networks around the world. AOI supplies this critical infrastructure to tier-one customers across cloud computing, CATV broadband, telecom, and FTTH markets. The company has R&D facilities in Atlanta, GA, and engineering and manufacturing facilities at its corporate headquarters in Sugar Land, TX, as well as in Taipei, Taiwan and Ningbo, China. For additional information, visit www.ao-inc.com.  

Media contact:
Sara Cicero
[email protected]
770-331-0269


Risks

  • Execution risks in expanding manufacturing capacity on schedule and maintaining quality standards amidst rapid scale-up.
  • Dependence on continued strong demand for optical connectivity in AI data centers, which could be impacted by macroeconomic or technology shifts.
  • Potential supply chain disruptions or cost increases affecting raw materials for optical components, impacting production and profitability.

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