Applied Optoelectronics enters into supply agreement with Microsoft

In a regulatory filing, the company states: “On June 21, 2023, Applied Optoelectronics (AAOI) entered into a supply agreement, “the SOW No. 2”, with Microsoft Corporation (MSFT), pursuant to which the Company will provide certain design services and assembly services of goods in accordance with Microsoft’s specifications. Under the SOW No. 2, according to a time schedule, the Company is to start designing certain Goods and building the supply chain to manufacture, assemble, sell and ship the Goods to Microsoft or an authorized purchasing entity. The initial term of the SOW is five years with automatic renewal unless terminated earlier. The SOW includes clauses regarding the Company’s commitment to maintain the production line dedicated to the production of Goods and the Company’s three-year warranty for the Goods.”