Apple announced on Wednesday that the tech giant has committed $390 million to FInisar, a company that makes laser chips for iPhone X.
Apple uses Finisar’s chips in its Apple products for depth and proximity sensing.
The money came from the company’s $1 billion Advanced Manufacturing Fund. On the news, shares of Finisar were soaring as much as 28% in premarket trading.
The company said it will use the investment to reopen a plant that has been shuttered in Texas as well as create jobs.
The 700,000 square foot manufacturing plant in Sherman will be transformed into a high-tech facility that develops
VCSEL (vertical-cavity surface-emitting laser) chips.
Every iPhone X has three VCSELS.
“VCSELs power some of the most sophisticated technology we’ve ever developed and we’re thrilled to partner with Finisar over the next several years to push the boundaries of VCSEL technology and the applications they enable,” said Apple
Chief Operating Officer Jeff Williams.
Finisar CEO Jerry Rawls stated, “When you combine our proven ability to consistently manufacture exceptional products with our new state-of-the-art Sherman facility, we’re confident we can achieve our shared goal of providing consumers with incredibility exciting features.”
Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.