Governor Abbott Announces Texas Semiconductor Innovation Fund Grant To AOI

~ In a move to further solidify Texas' position as a leader in advanced manufacturing, Governor Greg Abbott announced today that Applied Optoelectronics, Inc. (AOI) will receive a grant of $20,852,518 from the Texas Semiconductor Innovation Fund (TSIF). This grant will support the expansion of AOI's manufacturing capacity in Sugar Land and is expected to create 500 new jobs.

Governor Abbott expressed his excitement about the investment by AOI, stating that it will not only create high-skilled jobs but also advance Texas' leadership in innovation and semiconductor manufacturing. He added that the future of technological advancement will always be built in the great state of Texas.

Founded in Houston in 1997, AOI specializes in designing and manufacturing fiber-optic networking products. The expansion of their Sugar Land facility will focus on increasing production of specialized semiconductor chips and transceivers used for high-speed optical networking infrastructure.

AOI's Chief Financial Officer and Chief Strategy Officer Stefan Murry expressed pride in partnering with the state to expand their homegrown manufacturing. He stated that this investment will help increase production and create high-quality jobs while also shaping the future of AI data center infrastructure.

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Senator Joan Huffman, who sponsored the Texas CHIPS Act which established TSIF, also praised this investment. She stated that it will solidify Fort Bend County and the greater Houston region as a leading hub for advanced manufacturing. She also encouraged more companies to take advantage of TSIF to bring high-paying jobs and lasting prosperity to local communities.

Representative Suleman Lalani, M.D., who represents Sugar Land, echoed Senator Huffman's sentiments. He stated that this investment is a strong vote of confidence in Sugar Land's innovation and its potential as a hub for advanced manufacturing and next-generation technology. As both a physician and legislator, he emphasized that innovation is not just about technology but also about improving lives and expanding opportunities for families.

The Texas CHIPS Act was signed into law by Governor Abbott in 2023 to establish TSIF and the Texas Semiconductor Innovation Consortium (TSIC). These programs, administered by the Texas CHIPS Office, aim to leverage Texas' investments in the semiconductor industry, encourage companies to expand in the state, develop expertise and capacity in higher education institutions, and maintain Texas' position as the nation's leader in semiconductor manufacturing.

With this grant to AOI, it is clear that these programs are already driving strong momentum for semiconductor growth across the state. As Texas continues to invest in this industry, it is poised to remain at the forefront of innovation and economic prosperity.

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