Applied Optoelectronics Raises 2027 Monthly Capacity Target for High-Speed Optical Modules to 1 Million Units

en.Wedoany.com Reported - On November 5, U.S. optical communications equipment manufacturer Applied Optoelectronics (AOI) announced its latest capacity expansion plan for 800G and 1.6T high-speed optical modules, raising its combined monthly capacity target by the end of 2027 from the previous 930,000 units to more than 1 million units, while lowering its target for the end of 2026 from 650,000 units to more than 500,000 units. The company's currently installed manufacturing equipment capacity is close to 330,000 units per month, further increased from approximately 200,000 units at the end of the second quarter. This adjustment involves the construction progress of production facilities in Texas, United States, and changes in demand from artificial intelligence data center customers.

Applied Optoelectronics is advancing the construction of multiple manufacturing facilities in the Houston metropolitan area of the United States, involving a total production space of more than 1.6 million square feet, for expanding capacity of 800G and 1.6T optical modules, external laser source modules, and supporting lasers. Among them, the first-phase expansion plant in Sugar Land covers approximately 210,000 square feet and is dedicated to 800G and 1.6T optical module manufacturing, with initial operations planned to begin in December 2026.

The company plans to transfer part of the optical module production from its existing headquarters campus to the new plant and use the freed-up space to expand indium phosphide laser manufacturing capacity. Due to delays in new power connections and construction progress, the second-phase expansion project in the United States is expected to be postponed by several months. According to the latest plan, approximately 30% of the global high-speed optical module monthly capacity by the end of 2027 will be located in Texas.

Applied Optoelectronics stated that 800G and 1.6T optical modules can use the same production lines and main manufacturing processes, but 1.6T products require different final testing procedures. The company expects 800G products will remain the main source of near-term data center business growth, while 1.6T products are planned to begin contributing revenue in the fourth quarter of 2026 and expand delivery scale in 2027.

The company also disclosed that some large data center customers are accelerating the shift of order demand from 800G to 1.6T products. As the pace of this transition exceeds previous expectations, some raw material supply for 1.6T products has become tight in the fourth quarter. Applied Optoelectronics expects that customer demand for 800G and 1.6T optical modules will continue to exceed its manufacturing capacity throughout 2027.