Insights from Stefan Murry at the Rosenblatt Age of AI Summit

Ramp in 400G/800G and U.S. manufacturing expansion

AOI reported a sequential increase in Q2 400G datacom transceiver sales, driven by growing AI-driven demand across hyperscale data centers. A new hyperscale customer, which began contributing modestly in Q2, is expected to represent around 10% of AOI’s revenue in Q3 and continue to scale in Q4 and beyond.  

With ongoing AOI product qualifications for 400G and 800G transceivers, Murry noted the company plans to scale production to support volumes 2–3x the levels implied in its recent announcement. AOI’s Taiwan factory has already been qualified for both 400G and 800G production by a major hyperscale customer, while its planned Houston-based factory will provide a diversified supply chain for customers concerned about geopolitical risk. 
 
Murry added that he believes the factory will be the largest U.S. domestic production facility for high-speed, AI-focused data center transceivers, and the most advanced in terms of automation. 

Looking ahead: The advantage of in-house laser fabrication and production

By mid-2026, AOI expects to produce up to 200,000 800G1.6T transceivers per month, supported by the company’s in-house 200G-per-lane EML and silicon photonics platforms. Murry explained how AOI’s vertically integrated laser manufacturing and automation capabilities are critical. While transceiver performance has largely standardized, AOI’s in-house laser fabrication and automated production capacity provide resilience against supply shortages and cost pressures. He noted that AOI has had in-house laser manufacturing for many years, and when there are supply constraints and the need to ramp newer, higher-speed designs quickly, having your own laser fabrication is a huge advantage. 

The company looks forward to showcasing its Sugar Land, TX facility later this year, marking a milestone in AOI’s strategy to provide secure, automated, and U.S.-based supply for the world’s leading hyperscale operators.