AOI Expands Houston Footprint to 900,000 Sq Ft for Increased Capacity

Expansion will allow optical networking company to scale production of AI-focused data center transceivers and optics.

Apr. 17, 2026 at 11:19am

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A high-end studio photograph featuring a group of sleek, polished optical networking devices in shades of silver, black, and blue, arranged elegantly on a clean, monochromatic background, conceptually representing the advanced technology powering AI infrastructure.Precision optical components from AOI power the next generation of AI-driven data center networks.Pearland Today

Applied Optoelectronics, Inc. (AOI), a leading provider of advanced optical and HFC networking products, announced plans to expand its Houston-area footprint by adding two adjacent buildings in Pearland, Texas, adding approximately 388,000 square feet of manufacturing capacity. This expansion builds on AOI's existing U.S. operations, which include a 210,000-square-foot manufacturing facility under development near its Sugar Land headquarters and a recently leased 154,000-square-foot building.

Why it matters

The expansion will allow AOI to increase its capacity to produce up to 700,000 units of 800G and 1.6T transceivers per month in the Houston area, while also expanding its laser fabrication capacity by around 350% by the end of 2027. This aligns with the company's 2027 capacity targets and represents the next step in its strategy to become a premier high-volume U.S. producer of AI-focused data center transceivers and optics.

The details

The new Pearland facilities will add approximately 388,000 square feet of manufacturing capacity to AOI's existing U.S. operations, which include a 210,000-square-foot facility under development near its Sugar Land headquarters and a recently leased 154,000-square-foot building. This expansion will allow the company to scale production to meet accelerating customer demand and support the next wave of AI infrastructure deployments.

  • AOI announced the expansion plans on April 17, 2026.

The players

Applied Optoelectronics, Inc. (AOI)

A leading provider of advanced optical and HFC networking products that are the building blocks for AI datacenters, CATV and broadband fiber access networks around the world.

Dr. Thompson Lin

Founder, Chairman, and CEO of AOI.

Dr. Stefan Murry

Chief Financial Officer and Chief Strategy Officer of AOI.

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What they’re saying

“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 to scale rapidly to meet this demand.”

— Dr. Thompson Lin, Founder, Chairman, and CEO of AOI

“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.”

— Dr. Stefan Murry, Chief Financial Officer and Chief Strategy Officer

What’s next

AOI plans to have the expanded capacity in Pearland operational by the end of 2027, allowing it to meet accelerating customer demand and support the next wave of AI infrastructure deployments.

The takeaway

AOI's strategic expansion of its Houston-area manufacturing footprint positions the company to become a premier high-volume U.S. producer of critical optical networking components needed to power the growth of AI infrastructure and data centers.