Texas Insider Report: AUSTIN, Texas – Governor Greg Abbott today announced that a Texas Semiconductor Innovation Fund (TSIF) grant of $20,852,518 has been extended to Applied Optoelectronics, Inc. (AOI) for an expansion of their manufacturing capacity in Sugar Land. The expansion represents more than $279 million in capital investment and is expected to create 500 jobs.
“Texas is leading America’s resurgence in advanced manufacturing,” said Governor Abbott. “This investment by AOI to expand their operations in Sugar Land will create hundreds of high-skilled jobs and advance our state’s leadership in innovation and semiconductor manufacturing. The future of technological advancement will always be built in the great state of Texas.”
Founded in Houston in 1997, AOI specializes in the design and manufacture of fiber-optic networking products. The expansion of the Sugar Land manufacturing facility will increase production of specialized semiconductor chips and transceivers used to build high-speed optical networking infrastructure.
“We are proud to partner with the State of Texas to expand our homegrown manufacturing,” said AOI Chief Financial Officer and Chief Strategy Officer Stefan Murry. “This investment helps us to increase our semiconductor and optical transceiver production, create high-quality jobs, and help to define the future of AI data center infrastructure.”
“I’m proud that the Texas CHIPS Act, which I sponsored, is driving strong momentum for semiconductor growth across our state,” said Senator Joan Huffman. “This grant to Applied Optoelectronics will help solidify Fort Bend County and the greater Houston region as a leading hub for advanced manufacturing. I look forward to more companies taking advantage of the TSIF to bring high-paying jobs and lasting prosperity to our local communities.”
“This investment is a strong vote of confidence in Sugar Land and in the innovation already taking root here,” said Representative Suleman Lalani, M.D. “Our community is quickly becoming a hub for advanced manufacturing and next-generation technology, and this grant reflects that the work being done in Sugar Land is being noticed. As both a physician and a legislator, I know innovation is not just about technology. It is about improving lives, expanding opportunity, and building a stronger future for our families.”
View more information about AOI.
Governor Abbott signed the Texas CHIPS Act into law in 2023 to establish the Texas Semiconductor Innovation Fund (TSIF), a grant program to continue Texas’ leadership in semiconductor research, design, and manufacturing, as well as the Texas Semiconductor Innovation Consortium (TSIC). These programs, administered by the Texas CHIPS Office, a division within the Texas Economic Development & Tourism Office in the Office of the Governor, are designed to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.
