Applied Optoelectronics Inc. will receive a $20.85 million grant for its manufacturing expansion in Sugar Land, Gov. Greg Abbott announced in an April 29 news release.
Founded in 1997, the domestic optical module manufacturer company designs and manufactures fiber-optic networking products, including semiconductor chips and transceivers used to build high-speed optical networking infrastructure, per the news release.
What it means
The grant—which will be used to support AOI's new 266,000-square-foot facility and a new manufacturing line at its existing headquarters—comes from the Texas Semiconductor Innovation Fund, a program that Abbott signed into law under the Texas CHIPS Act in 2023, according to the release.
The expansion, which was announced in July 2025, is expected to bring 500 jobs to the area.
"This investment is a strong vote of confidence in Sugar Land and in the innovation already taking root here," Rep. Suleman Lalani, D-Sugar Land, said. “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."
Why it matters
The grant program was created to continue Texas’s leadership in semiconductor research, design and manufacturing as well as “maintain the state’s position as the nation’s leader in semiconductor manufacturing,” per the release.
“Texas is leading America’s resurgence in advanced manufacturing,” Abbott said. “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.”
