AOI’s story is deeply rooted in Texas. We were founded in 1997 at the University of Houston to commercialize semiconductor and laser technologies. In a few short years following, we established our headquarters in Sugar Land, TX, and have grown steadily ever since.
But this isn’t just a story about growth. It’s about building an ecosystem that empowers innovation and the people that make it happen. Our partnership with the City of Sugar Land, supported by a $2 million incentive package and a shared vision for economic vitality, ensures that our newest manufacturing expansion creates meaningful opportunities for our workforce and the community.
We are proud to contribute to the city’s growing reputation as a hub for technology innovation, advanced manufacturing, and research. This expansion marks the single largest production increase we have undertaken to support the next wave of AI transformation.
Meeting demand for AI-ready connectivity with advanced automation
As the demand for faster, smarter, and more reliable data infrastructure continues to grow, optical transceivers—the critical components that enable high-speed communication within AI data centers—are at the heart of this transformation. Our new 210,000-square-foot facility in Sugar Land will help us onshore more production and establish what we expect to be the largest U.S.-based manufacturing capacity for AI-focused datacenter transceivers.
Over the past decade, AOI has invested heavily in developing its own automation technologies, which spans mechanical and electrical design to software, machine vision, and AI-assisted inspection. These capabilities were designed and built by AOI engineers to simplify and accelerate transceiver production.
This repeatable precision has dramatically shortened production cycles, improved consistency, and reduced the cost and complexity of scaling. It’s how AOI ensures capacity and stability as demand continues to grow. And it’s what enables us to rapidly and predictably add manufacturing capacity to our facilities in Texas for this expansion.
How AOI’s integrated model powers production
A key reason AOI can take on a production ramp of this magnitude lies in our vertically integrated manufacturing model. From laser design to packaging and testing, we control every critical step of the process. That integration lets us move from design to high-volume production faster and with tighter quality control—exactly what our customers need as they scale.
We’re currently expanding our 400 and 800G transceiver capacity and have a clear roadmap to 1.6T production as demand matures, using the same manufacturing line and equipment as we use for 800G. This not only keeps us at the forefront of optical innovation for AI but also ensures that U.S.-based manufacturing remains globally competitive.
The future of computing depends on speed, precision, and predictability, which are qualities that define AOI. As we enter this exciting next chapter, our focus remains on driving engineering innovation, investing in top talent, and empowering our customers as they advance their AI roadmaps.
