Applied Optoelectronics Plans 500,000-Unit Monthly 800G Capacity by End of 2026
Applied Optoelectronics reported Q4 data center revenues of $74.9 million, up 69% year-over-year and 70% sequentially, driven by strong demand for 400G and 100G transceivers. The company plans to expand its 800G production capacity from 90,000 to over 500,000 units per month by end-2026 with a new Texas facility.
1. Q4 Data Center Performance
Applied Optoelectronics generated $74.9 million in data center revenues in Q4, reflecting a 69% year-over-year and 70% sequential increase. Growth was fueled by 141% year-over-year sales of 400G products and a 54% rise in 100G module shipments.
2. 800G Production Ramp Plans
The company ended 2025 with 90,000 units per month of 800G production capacity and has secured orders from major hyperscale customers following successful module qualification. Management expects 800G transceivers to become the largest contributor to its data center segment starting in the second quarter of 2026.
3. Texas Expansion for Production
To meet demand projected to exceed current output through mid-2027, Applied Optoelectronics has leased a new facility in Sugar Land, Texas, with construction already underway. This expansion aims to boost combined 800G and 1.6T monthly output to over 500,000 units by end-2026.