SUGAR LAND, TX (Covering Katy News) – A Sugar Land semiconductor company is poised to invest more than $279 million in local manufacturing expansion after landing a $20.8 million state grant aimed at bolstering Texas's advanced technology sector.
Applied Optoelectronics, Inc. was awarded a $20,852,518 grant through the Texas Semiconductor Innovation Fund, announced by Governor Greg Abbott on Wednesday. The company plans to pour that capital into expanding its Sugar Land manufacturing operations, with 500 new jobs expected to follow.
A Sugar Land semiconductor company is set to grow significantly after receiving more than $20 million in state funding aimed at boosting Texas's advanced manufacturing sector.
Applied Optoelectronics, Inc. was awarded a $20,852,518 grant through the Texas Semiconductor Innovation Fund, Governor Greg Abbott on Wednesday. The company plans to pour more than $279 million in capital into expanding its Sugar Land manufacturing operations, with 500 new jobs expected to follow.
The company is located at 3139 Jess Pirtle Blvd. in Sugar Land.
"Texas is leading America's resurgence in advanced manufacturing," Governor 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. The future of technological advancement will always be built in the great state of Texas."
AOI traces its roots to Houston, where the company was founded in 1997. It focuses on designing and manufacturing fiber-optic networking products. The Sugar Land expansion will ramp up production of specialized semiconductor chips and transceivers — components that form the backbone of high-speed optical networking infrastructure.
AOI Chief Financial Officer and Chief Strategy Officer Stefan Murry pointed to the company's Texas origins in welcoming the partnership.
"We are proud to partner with the State of Texas to expand our homegrown manufacturing," Murry said. "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."
The TSIF was established under the Texas CHIPS Act, legislation designed to position the state as a national leader in semiconductor production. Sen. Joan Huffman, who authored the bill, said the AOI grant is evidence the program is delivering results.
"I'm proud that the Texas CHIPS Act, which I sponsored, is driving strong momentum for semiconductor growth across our state," Huffman said. "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."
State Rep. Suleman Lalani, M.D., whose district includes Sugar Land, said the grant validates the economic direction his community has been pursuing.
"This investment is a strong vote of confidence in Sugar Land and in the innovation already taking root here," Lalani 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. 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."