The laser chip maker will use the money to get its plant up and running again and will use the facility to make laser chips that power iPhone features such as Face ID, portrait photography, animoji, and others such.
That's a move straight out of Tim Cook's playbook - see prior examples like cornering the market for flash memory, which helped the iPod and iPhone dominate over the past 15 years, and also helped Apple hit its insane profit margins.
Apple Inc. has made its second notable investment this week - this time in facial recognition technology company Finisar Corp. Still, Finisar stock is up 30 percent today, and this is a big deal for the company, which is nearly 30 years old and survived the dotcom bubble and crash experience.
Apple has announced an investment worth $390 million in Finisar, the US-based tech firm that produces the vertical-cavity surface-emitting lasers or VCSEL that powers the Face ID feature of iPhone X. The amount would be spent in furthering R&D effort on this front while also setting up a new plant in Sherman, Texas that would be producing the VCSELs. The deal also suggests Apple will include these sensors in additional products.
"We're excited to continue our innovation with Apple of a technology that has tremendous potential", said Jerry S. Rawls, CEO of Finisar, in a press release. And let's be clear: This deal is as much about helping Finisar create a plant to build more VCSELs as it is about making sure Apple can dominate that supply at a favorable price - good for Apple, bad for competitors.
S. African court blasts Zuma, orders `state capture' inquiry to proceed
Mlambo rebuked Zuma, saying he had attempted to interfere with the Constitutional obligation of the Public Protector. The inquiry was recommended in a report called " State of Capture " released past year by the public protector.
When combined with the company's nearby plant in Allen, Texas, Finisar's payroll in Northern Texas is expected to be $65 million.
Apple is pouring $390 million into an American company that helps power AirPods and FaceID - an investment that will create 500 jobs in Texas. Apple said that in the current calendar quarter ending December 31, it has bought more than 10 times as numerous lasers as had ever been manufactured over a similar time frame.
Finisar's new facility should be fully operational by the second half of 2018. The latest investment in Finisar will enable the company to boost production, as well as research and development, to create more optical communications parts.
Apple is making a substantial $390 million Dollars investment into component maker Finisar.
The dot map is then read by an infrared camera and the structure of your face is relayed to the A11 Bionic chip in the iPhone X, where it is turned into a mathematical model. The iPhone X is now the only Apple product with a facial recognition sensor. Should you upgrade your iPhone to iOS 11.1?