Applied Optoelectronics (AOI) started construction work on two adjacent properties in Pearland, Texas, adding nearly 400,000 square feet (approximately 37,200 square meters) of manufacturing capacity for high-speed optical transceivers. The expansion will support increased production of 800G and 1.6T modules used to connect switches, servers and accelerator clusters across AI data center networks.
The properties at 14621 Kirby Drive and 11555 N. Spectrum Boulevard extend AOI’s manufacturing footprint across the Houston area. AOI operates its headquarters and an existing manufacturing complex in nearby Sugar Land, Texas, alongside engineering and production facilities in Taipei, Taiwan, and Ningbo, China.
The Pearland buildout advances the manufacturing plan AOI outlined in April 2026, when it said its expanded Houston-area footprint would reach approximately 900,000 square feet (83,600 square meters). AOI said that footprint could eventually support monthly production of as many as 700,000 combined 800G and 1.6T transceivers, while increasing its laser fabrication capacity by approximately 350% by the end of 2027.
• Nearly 400,000 square feet (37,200 square meters) of manufacturing capacity under development
• Two adjacent facilities located in Pearland, Texas
• Production expansion focused on 800G and 1.6T optical transceivers
• New capacity will support AI and cloud data center customers
• Pearland expansion complements AOI’s existing Sugar Land manufacturing operations
• AOI also operates engineering and manufacturing facilities in Taiwan and China
• Company previously outlined potential Houston-area output of up to 700,000 high-speed transceivers per month
“We are proud to be part of the Pearland business ecosystem and appreciate the level of support we received from the city and economic development offices to match our manufacturing needs,” said Dr. Stefan Murry, Chief Financial Officer and Chief Strategy Officer of AOI. “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. 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.”
🌐 Analysis: AOI is moving from announced capacity plans to physical execution as hyperscale networks shift toward 800G deployments and begin adopting 1.6T links. The Pearland project complements AOI’s existing Sugar Land and Taiwan expansions following its $200 million-plus 1.6T order and several large 800G orders disclosed earlier in 2026.
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