Applied Optoelectronics Bets Big on AI With Nearly 400,000-Square-Foot Texas Expansion

By IPO Edge | July 14, 2026, 12:48 PM

By Karen Roman

Optical and HFC networking provider Applied Optoelectronics, Inc. (Nasdaq: AAOI) said it started constructing two adjacent properties in Pearland, Texas, to add nearly 400,000 square feet of manufacturing capacity.

The company aims to increase production of its 800G and 1.6T optical transceivers with these new properties, representing a main component of AI infrastructures that lets network devices communicate over fiber optics and enable fast, long-distance data transmission, it stated.

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“As we continue to grow and expand our Houston-area footprint, Pearland offers us access to a strong workforce, excellent infrastructure, and room to scale our operations,” said Dr. Stefan Murry, Applied Optoelectronics CFO and Chief Strategy Officer.”These facilities will be instrumental in supporting our long-term growth strategy, enabling us to expand production of advanced optical transceivers and strengthen AOI’s position as a key supplier to the AI and cloud infrastructure markets.”

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