Optical communications components provider Finisar will get $390 million from customer Apple to open a manufacturing facility for vertical-cavity surface-emitting lasers (VCSELs), a technology used in key features of Apple products, including iPhone X.
Finisar will use part of the funding to transform a long-shuttered, 700,000-square-foot manufacturing plant in Sherman, Texas, into a workhorse of VSCEL manufacturing by the second half of next year, creating more than 500 jobs, including engineers and technicians, Apple said. The combination of the Sherman plant and another Finisar plant in Allen, Texas, is expected to bring Finisar's payroll in the state to more than $65 million.
VCSELs are used in some of Apple’s new features, including Face ID, made possible with the iPhone X TrueDepth camera. Apple said it bought 10 times more VCSEL wafers in the fourth quarter than were previously manufactured worldwide over a similar time period.
“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 Jeff Williams, Apple’s chief operating officer, in a press statement.
The $390 million is part of Apple's previously announced $1 billion Advanced Manufacturing Fund. Apple has said it would invest at least $1 billion with U.S.-based companies to help foster innovation and crete jobs. In May, Apple gave Gorilla Glass maker $200 million from the fund to support R&D and buy capital equipment.
Apple claims to support 2 million jobs across all 50 U.S. states, including 450,000 jobs attributable to Apple’s spend and investment with U.S.-based suppliers. The company says it spent more than $50 billion with more than 9,000 domestic suppliers and manufacturers last year alone.
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