Apple Gives $390 Million to Company Producing iPhone FaceID Components
Apple announced the name of the new company, which will receive funds from the production fund worth $1 billion, which she presented earlier this year – US Advanced Manufacturing Fund.
The company’s name is Finisar, and it produces laser technologies which are critical for the iPhone X features such as facial recognition, the amount it will receive is $390 million. With this also the company want’s to create new jobs in the US.
Gene Munster, a longtime Apple analyst who now serves as a partner at Loup Ventures, said the deal gives Apple a competitive advantage for smartphone-based augmented reality products.
“This investment shows the company is doubling down on AR again, and locks down the VCSEL market, which will make it tough for other smartphone players to compete in AR,” he wrote.
A competing maker of 3-D sensors, Lumentum Holdings Inc., fell as much as 15 percent, its biggest intraday drop in more than two years.
“While this investment will likely come across as bad for Lumentum, we do not believe Lumentum’s relationship with the company has necessarily been affected,” Munster said. “Given the limited supply of VCSEL arrays worldwide, as well as the limited manufacturing capacity of Finisar and Lumentum, we believe Apple will need multiple suppliers in order to meet their demand targets.”
Finisar plans to open a plant in Texas to create the products for Apple, and Apple, in turn, says it will buy 100 percent of the production.
US President Donald Trump has asked Apple (and other technology companies) to move their production to the US, and this new fund appears to be part of Apple’s commitment.
Apple is working on laser-based 3D sensors for the future iPhone in 2019. They will allow to improve the performance of applications with augmented reality.http://gizbrain.com/2017/12/14/apple-gives-390-million-to-finisar/https://i2.wp.com/gizbrain.com/wp-content/uploads/2017/12/iphone-x-face-id.jpg?fit=1920%2C1080https://i2.wp.com/gizbrain.com/wp-content/uploads/2017/12/iphone-x-face-id.jpg?fit=210%2C118APPLETECH NEWSApple,Apple FaceID,TechnologyApple announced the name of the new company, which will receive funds from the production fund worth $1 billion, which she presented earlier this year - US Advanced Manufacturing Fund. The company's name is Finisar, and it produces laser technologies which are critical for the iPhone X features such as...John GreenJohn GreenJohngreen@gizbrain.comContributorJohn Green is a writer at GizBrain.GizBrain - Your Tech Brain