Applied Optoelectronics awarded $20.9 million Texas grant for AI data center transceiver manufacturing expansion

Applied Optoelectronics, Inc. received a $20.9 million grant from the Texas Semiconductor Innovation Fund to expand its manufacturing facility in Sugar Land, Texas.

The expansion will add 210,000 sq. ft. of production capacity for AI-focused data center transceivers (optical networking components that transmit data in large server installations), positioning the facility as one of the largest such production plants in the U.S.

Texas Governor Greg Abbott stated the investment will create hundreds of high-skilled jobs and advance the state's leadership in semiconductor manufacturing.