3D Sensor Firm Finisar To Get $390 Million In Investments From Apple

Apple just announced that it would be investing up to $390 million in Finisar Corp. The company basically makes the vertical-cavity surface-emitting lasers (VCSEL) that allow for the True Depth feature on the iPhone X camera. Apple is taking the money from its Advanced Manufacturing Fund and it will be used to construct a Texas plant for making the chips.

The Fund was created by Apple this year with the intent to promote innovation in the U.S., as well as create jobs in the country. By taking a huge chunk of the $1 billion fund and putting it in an American company to build a facility in a U.S. state, it seems Apple is its promises. This isn’t just for air either as the investment is intended to help boost R&D spending by Finisar, CEO Jerry S. Rawls said in a statement.

“We're excited to continue our innovation with Apple of a technology that has tremendous potential," Rawls said. "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. 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."

Aside from Finisar, Wall Street is also giddy at the thought of so much money being invested in the company, with The Motley Fool calling the move “brilliant.” This is due to the expected explosion for the demand of VCSEL technology in the coming years, which Apple essentially locked down with this investment.

Analysts are already predicting that the VCSEL market will be worth $4.7 billion by 2024. Considering the role that the technology might play in Apple’s future iPhone strategies, it’s likely to recoup its investments and make a ton of profit in return.