(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.