TE Connectivity to Invest $62 Million in Rochester, Create More Than 860 Jobs as AI Drives Demand for Optical Technology

ROCHESTER, N.Y. — Global technology manufacturer TE Connectivity plans to invest more than $62 million in a new advanced manufacturing and research facility in the Rochester region, creating more than 860 jobs and expanding the region's role in the rapidly growing artificial intelligence infrastructure market.

The company announced Nov. 12 that it will repurpose the former Sam's Club at 1600 Marketplace Drive into a 135,000-square-foot facility focused on next-generation fiber-optic connectivity products. Operations are expected to begin in spring 2027, with manufacturing capacity increasing through 2031.

The expansion builds on TE Connectivity's recent acquisition of high-density fiber array technology from RAM Photonics, a company with roots in Rochester's optics and photonics industry.

The technology is designed to address a growing challenge for artificial intelligence data centers: moving enormous amounts of information between computing systems while improving performance, reducing energy requirements and supporting increasingly complex infrastructure.

The investment connects Rochester's established strengths in optics, photonics and advanced manufacturing to one of the fastest-growing sectors of the global technology economy.

Rochester Photonics Technology Finds a New Market in AI

TE Connectivity, headquartered in Galway, Ireland, designs and manufactures connectors, sensors and electronic components used in transportation, energy, industrial automation, medical technology and data centers.

The company employs more than 100,000 people globally, including approximately 10,000 engineers, and serves customers in about 130 countries.

Its Rochester expansion will support the development and production of high-density fiber array units, or FAUs, using technology recently acquired from RAM Photonics.

Fiber array units precisely position and connect multiple optical fibers, allowing data to move between advanced computing and networking components. They are particularly important in systems requiring high-speed communication, dense connections and efficient power consumption.

TE Connectivity said the technology will help data center operators transition to higher-density, lower-power architectures, including systems using co-packaged optics.

Co-packaged optics integrates optical connections closer to computing and networking chips, helping address performance and energy challenges as computing systems become more powerful.

The company's investment is intended to increase both engineering and manufacturing capacity as demand for advanced optical connectivity grows. The company also reported significant customer interest in its optical connectivity technology, citing the need to support new product designs and anticipated growth.

Why AI Data Centers Need Advanced Optical Connectivity

The rapid expansion of artificial intelligence is changing how data centers are designed, built and operated. AI systems rely on large numbers of high-performance processors, including graphics processing units, or GPUs, to train models and process increasingly complex workloads.

As these systems expand, the ability to move information efficiently between processors, servers and networking equipment becomes a critical factor in overall computing performance. Traditional electrical connections face increasing challenges involving bandwidth, power consumption and physical space.

Optical connectivity uses light transmitted through fiber-optic cables to move data at high speeds. Advanced optical systems can help reduce communication bottlenecks while supporting the growing computing demands of AI infrastructure.

This shift is creating opportunities for manufacturers specializing in fiber optics, precision components and photonic systems.

For Rochester, an established center of optics and photonics research and manufacturing, the growing market represents a new application for capabilities developed over decades.

NVIDIA's Optical Investments Highlight Growing Industry Demand

The importance of optical connectivity is becoming increasingly visible through investments by major artificial intelligence companies.

In March 2026, NVIDIA announced a strategic partnership with Lumentum Holdings that included a $2 billion investment to support advanced optical technology development, research and U.S. manufacturing capacity. The agreement also included commitments related to advanced laser components used in next-generation AI infrastructure.

In May, NVIDIA and Corning announced a separate partnership to expand domestic manufacturing of optical connectivity products. Under that agreement, Corning plans to increase its U.S. optical connectivity manufacturing capacity tenfold, expand fiber production capacity by more than 50% and establish three new manufacturing facilities in North Carolina and Texas.

The expansion is expected to create more than 3,000 jobs. These investments illustrate how optical connectivity is becoming an increasingly important part of the AI infrastructure supply chain.

TE Connectivity's Rochester expansion is part of this broader industry trend, with its products targeting hyperscale data centers and cloud computing providers.

TE Connectivity has not publicly identified NVIDIA as a customer of its Rochester operation or announced a specific product being manufactured for NVIDIA. However, the company's technology addresses the same optical connectivity challenges driving investment across the AI industry.

More Than 860 Jobs and $22 Million in State Incentives

The Rochester project is expected to create more than 860 jobs across engineering, manufacturing and management. Empire State Development is offering up to $22 million in performance-based Excelsior Jobs Program tax credits tied to the company's employment commitments.

The incentives are contingent on meeting program requirements and job creation targets.

Monroe County and Greater Rochester Enterprise are also supporting the project, which has a total estimated cost exceeding $62 million. The facility will occupy the former Sam's Club building on Marketplace Drive, converting vacant retail space into an advanced manufacturing and research operation.

The project represents a significant reuse of an existing commercial property while bringing new technical employment opportunities to the region.

Greater Rochester Enterprise worked with TE Connectivity and government and utility partners to advance the project.

TE Connectivity Is Already Recruiting Rochester Engineering Talent

The company's expansion is also reflected in its local engineering recruitment. A TE Connectivity job posting dated Oct. 22 seeks senior research and product development engineers in Rochester to work on optical connectivity technologies supporting AI, hyperscale data centers, cloud computing and next-generation digital infrastructure.

The position focuses on fiber connectivity, precision mechanical systems and the development of products designed for high-speed communication and scalable manufacturing.

A separate position posted Nov. 12 seeks a program manager for optical connectivity manufacturing process development. The role includes coordinating engineering, production processes, validation and the transition to scalable manufacturing. These postings provide additional evidence that TE Connectivity is building the technical and operational capabilities needed to support its announced expansion.

Rochester's Optics Industry Gains a New Opportunity in AI

Rochester has long been recognized for its concentration of optics, photonics and imaging expertise, with capabilities spanning precision manufacturing, optical systems, research and product development. The region's technical workforce and specialized suppliers support applications across telecommunications, medical devices, defense, industrial systems and advanced imaging. Artificial intelligence infrastructure is emerging as another market for those capabilities.

TE Connectivity's investment illustrates how optical technologies developed within Rochester's innovation ecosystem can support products serving global markets.

The project also creates potential opportunities for regional manufacturers, engineering firms, technical service providers and suppliers working in precision components and advanced manufacturing. While the full economic impact will depend on hiring, production volumes and supplier relationships, the announced investment represents a substantial commitment to the region's manufacturing base.

What Comes Next for Rochester

TE Connectivity expects the new facility to open in spring 2027, with manufacturing operations expanding through 2031. The company has not publicly disclosed the identities of customers expected to receive products manufactured at the Rochester facility or detailed production targets. Its expansion comes as AI companies and data center operators invest heavily in the infrastructure required to support increasingly powerful computing systems.

For Rochester, the project combines several important economic development opportunities: advanced manufacturing investment, commercialization of specialized optical technology, redevelopment of existing commercial property and the creation of engineering and manufacturing jobs. It also reinforces the region's position in an industry where demand is increasingly driven by artificial intelligence.

As AI infrastructure continues to evolve, the technologies connecting processors and computing systems are becoming as strategically important as the processors themselves. Rochester's optics and photonics industry is positioned to participate in that growth, and TE Connectivity's planned investment represents another step in connecting regional technology expertise to global demand.