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Apple to bolster chip producer Finisar with $390 million investment

(FinancialPress) —Finisar Corp will receive a $390 million cash injection from Apple in order to boost its chip production capacity, those which power some of the most remarkable features of the flagship iPhoneX – Animojis, Face ID and portrait-mode photos.

After the announcement, the Sunnyvale, California-based Finisar‘s shares gained 14% in premarket trade reaching a value of $22.

This is the second investment made by Apple‘s $1 billion advanced manufacturing fund. It was created in order to incentivate innovation and create jobs, as told by Apple. The debut investment made with the fund was a $200 million injection into Gorilla Glass maker Corning Inc in the past March.

Finisar will upgrade and reopen a now-closed 700,000 square-foot plant in Sherman, Texas using the funds. Once operational, it will be used to manufacture high volumes of laser diodes called VCSELs (vertical-cavity surface-emitting lasers).

Apple said that it would buy 10x the current worldwide production capacity of VCSELs over a similar time period during the fourth quarter of 2017.

The Sherman facility will be fully operational and shipping product by the second semester of 2018.

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