Applied Optoelectronics, Inc. (NASDAQ: AAOI) has begun construction on two properties in Pearland, Texas, adding nearly 400,000 square feet of manufacturing capacity to support increased production of its 800G and 1.6T optical transceivers, according to a company statement.

The two sites, located at 14621 Kirby Drive and 11555 N. Spectrum Boulevard, are adjacent to AOI's existing Pearland campus. The expansion is intended to scale production of optical transceivers used in AI and cloud network infrastructure.

Dr. Stefan Murry, Chief Financial Officer and Chief Strategy Officer of AOI, cited workforce access and infrastructure as factors in the Pearland location. "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," he said.

Pearland Mayor Quentin Wiltz noted the project is expected to bring jobs to the area. "This project will bring high-quality jobs, strengthen our local economy, and deepen the innovation ecosystem that makes Pearland a destination for forward-looking companies," he said.

AOI, headquartered in Sugar Land, Texas, also operates facilities in Atlanta, Georgia, Taipei, Taiwan, and Ningbo, China.