Applied Optoelectronics (AAOI) Gets Texas’ Million-Dollar Backing, Soars 11%

Applied Optoelectronics Inc. (NASDAQ:AAOI) is one of the 10 Stocks Notching Impressive Double-Digit Gains.

Applied Optoelectronics climbed by 11.34 percent on Wednesday to close at $152.83 apiece, after bagging $20.9 million worth of fund grant from the state of Texas for the advancement of semiconductor production in the area.

The award forms part of the Texas Semiconductor Innovation Fund (TSIF) grant, which would help support its manufacturing expansion plans in Sugar Land, Texas.

Applied Optoelectronics

Photo from Applied Optoelectronics website

The TSIF provides grants to businesses, higher education, and state entities, in a bid to support economic development particularly from the semiconductor sector.

At present, Applied Optoelectronics Inc. (NASDAQ:AAOI) is underway with the expansion of an additional 210,000-square-foot manufacturing facility adjacent to its current headquarters in Sugar Land, where it will establish one of the largest production capacities for AI-focused data center transceivers in the US.

Upon completion, the new facility is expected to generate more than 500 new jobs.

“The support from the State of Texas is critical to our expansion plans and is a tangible commitment by the state to advancing semiconductor innovation for the AI era,” Applied Optoelectronics Inc. (NASDAQ:AAOI) CFO Stefan Murry said.

“AOI was founded by a team from the University of Houston, and over the intervening 29 years we have expanded in Texas to become a major international supplier of optical products enabling the AI age. With this investment, we can continue to expand our Texas-based capacity for production of the advanced high-speed optical transceivers that interconnect today’s AI data centers, helping cloud providers improve network performance while making their data centers more energy efficient and scalable,” he noted.

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