Consumer electronics giant Apple ( AAPL ) on Wednesday announced a $390 million investment in Finisar ( FNSR ), the second company to receive funding from Apple's $1 billion Advanced Manufacturing Fund. Its Canadian channel partners can be found in Ontario and Quebec. Corning Inc., the maker of glass for iPhone and iPad screens, earlier received $200 million for glass processing. Apple's not the only company interested in VCSEL technology either.
READ NEXT:Google announces AI research centre in China Apple said it will purchase 10 times more VCSEL wafers this quarter than have been previously manufactured worldwide over a "similar" time period.
As CNBC reports, Apple will help Finisar transform its Texas-based 700,000-square-foot manufacturing plant. Apple says the investment will create more than 500 jobs.
The Apple funding will allow Finisar "to exponentially increase its R&D spending and high-volume production" of VCSELS, Apple said in a press release.
In addition to gaining share in high-power VCSELs, Finisar could ramp production capacity for low-power VCSELs for Apple as well, he said. "Technology is only as good as the people behind it, and Finisar is a company with a long history of putting its employees first and supporting the community it's a part of". President Trump has been pushing Apple to move its iPhone production to the USA, and this new Advanced Manufacturing Fund seems to be part of a response to more US-based manufacturing.
Jeff Williams, chief operating officer of Apple, said the investment will transform its manufacturing capabilities for devices such as the iPhone X. "Finisar has always been keenly aware it takes great people to power our work and that's why we're thrilled to be adding Sherman to our family". After falling to $19.30 in NY yesterday, Finisar rose more than 30 percent in pre-market trading following the deal's announcement. "The city has also adopted a pro-business culture, making Sherman the industry and commerce hub of North Texas".
Apple supports 2 million jobs across all 50 states, including 450,000 jobs attributable to Apple's spend and investment with US-based suppliers.