Apple invests millions in Finisar, a firm that makes iPhone X hardware

Apple has invested $390 million in Finisar, a manufacturer of optical communications components.

That's right: It's investing in lasers.

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According to Apple, the money will enable Finisar to increase research and development of vertical-cavity surface-emitting lasers (VCSELs). These may sound like something straight out of a sci-fi thriller, but they're already used in some of the iPhone X's standout features including FaceID, Animoji, and Portrait Mode, as well as the proximity sensors in Airpods.

"VICSELs 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 of VCSEL technology," said Apple's chief operating officer Jeff Williams in a statement.

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Apple also claims that the investment will create more than 500 jobs in northern Texas, where Finisar's manufacturing plants are located. "We're extremely proud that our involvement will help transform another American community into a manufacturing powerhouse," Williams said.

A technician works at Finsar's Sherman facility Credit: apple

The standout capabilities of the iPhone X have cemented Apple's position as a leader among electronics manufacturers in depth- and proximity-sensing technology. This December alone, the company claims it will purchase 10 times more VCSEL hardware than has been previously manufactured worldwide in one month.

But Finisar's and Apple's history is rocky. In the months leading up to the iPhone X's release, the corporation struggled to meet Apple's demand for hardware for the device's front-facing TrueDepth camera, and had to be dropped from the company's roster of manufacturers.

A Bloomberg report claimed that the decrease in supply led Apple to lower FaceID's performance standards, although Apple later claimed this report was false.

Presumably, Apple hopes the investment will help Finisar step up its game. But it's also clearly not putting all its eggs in one basket: Apple's Advanced Manufacturing Fund, from which the Finsar investment is drawn, is spreading over one billion dollars across various U.S.-based technology manufacturers. Corning Incorporated, which manufactures the glass in iPhones, received $200 million in May.

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