Apple Inc. (AAPL) on Wednesday said it awarded $390 million to Finisar Corp. (FNSR), which produces technology used in Apple's facial-recognition.
The award, from Apple's Advanced Manufacturing Fund, will allow Finisar to increase research and development and production of its vertical-cavity surface-emitting lasers, or VCSELs. Finisar is Apple's second-largest supplier of VCSELs, which are used in several of Apple's new features on the iPhone X, including Portrait mode selfies, Apple said.
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The news sent Finisar shares up 17% premarket.
Finisar last week said it had started shipping production quantities of the VCSELs. The device is critical to the Apple's FaceID recognition system, providing the 3D sensing capabilities that detect a face. Finisar plans a 700,000-square-foot production facility in Texas to produce VCSEL arrays.
Apple has said it will spend its $1 billion Advanced Manufacturing Fund investing in innovative production at domestic companies. Corning Inc. (GLW) received $200 million from the fund in May to expand high-tech glass processing, which was the fund's first award.
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(END) Dow Jones Newswires
December 13, 2017 06:40 ET (11:40 GMT)