apple finisar
A Finisar technician examines a wafer during production. Apple announced its $390 million investment in Finisar, which will be used to open a plant in Sherman, Texas. Apple

Apple is investing $390 million in Finisar, which builds the components found in the TrueDepth camera on the iPhone X, the Cupertino company announced on Wednesday.

Finisar manufactures the vertical-cavity surface-emitting lasers (VCSELs), which powers important features on the iPhone X, like the Face ID and Animoji. VCSELs are also used on the AirPods for proximity-sensing capabilities.

The investment towards Finisar is part of Apple’s $1 billion Advanced Manufacturing Fund, which supports “innovation and job creation by American manufacturers,” the company said in its announcement. Besides Finisar, Apple announced in May its $200 million investment in Corning Incorporated to support their R&D, capital equipment needs and glass processing.

The recent investment will also be used to increase Finisar’s R&D spending and towards “high-volume production” of VCSELs.

Apple Manufacturer Finisar Opening Plant In Texas

The money Apple is investing in Finisar will also be used to open up a plant in Sherman, Texas. Finisar already has a plant nearby in Allen, Texas. The new 700,000-square-foot facility is set to start shipping in the second half of 2018, Apple said. Finisar will soon begin hiring 500 employees for the plant, including engineers, technicians and maintenance teams.

Apple said one hundred percent of the VCELs it buys from Finisar will be made in Texas.

“VCSELs 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 VCSEL technology and the applications they enable,” Apple Chief Operating Officer Jeff Williams said in a statement. “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. We’re extremely proud that our involvement will help transform another American community into a manufacturing powerhouse.”

Finisar CEO Jerry S. Rawls said the company was “excited” to continue working with Apple.

“When you combine our proven ability to consistently manufacture exceptional products with our new state-of-the-art Sherman facility, we’re confident we can achieve our shared goal of providing consumers with incredibly exciting features,” he added.

The opening of the plant in Texas comes after President Donald Trump heavily criticized Apple and other American companies for building their products overseas. Trump ran his presidential campaign on promising to bring jobs back to America.

2018 iPhone and iPad Rumors

The investment in Finisar suggests Apple will further use the TrueDepth camera on future products. There have been rumors indicating that Apple will use the Face ID on upcoming iPhones and iPads.

KGI Securities analyst Ming-Chi Kuo said in September the 2018 iPhone lineup could include the Face ID found on the iPhone X. Meanwhile, another report said next year’s iPhones will include many or all of the iPhone X features for lower prices.

Another report in November said Apple is working on a 2018 iPad that will feature the Face ID, Animoji and will allows users to make payments. The features suggest the next year’s iPad could sport the TrueDepth camera.