Apple to Invest $390 Million in Texas-Based Chipmaker Finisar

Apple said on Wednesday it would invest $390 million (roughly Rs. 2,513 crores) in Finisar that it will use to build out a plant in Sherman, Texas to make chips that power popular iPhone features such as Face ID, Animojis, and Portrait-mode selfies.

The award will be part of Apple's $1 billion "Advanced Manufacturing Fund" to foster innovation and create jobs, Apple said in a statement.

Finisar will use the funds to transform a shuttered, 700,000-square-foot manufacturing plant in Texas to a facility developing vertical-cavity surface-emitting laser (VCSEL) chips.

"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," said Jeff Williams, Apple's chief operating officer.

Apple in a separate statement said the Sherman plant expects to begin shipping in the second half of 2018, and its output will make the Texas town the VCSEL capital of the US. Finisar will soon start hiring 500 highly skilled workers.

"One hundred percent of the VCSELs sold to Apple from Finisar will be made in Texas. Consistent with Apple's commitment to the environment, the company intends to procure enough renewable energy to cover all of its Apple manufacturing in the US," the Cupertino company added.

Written with inputs from Reuters