Apple backs Finisar with US$390m for Face ID technology

Apple backs Finisar with US$390m for Face ID technology

The company announced in a press release on Wednesday that it is investing $390 million in laser chip maker Finisar. In the new iPhone X, VCSELs are used in-depth sensing roles and are a vital component of its Face ID, Animoji features which again are among the most standout features of the iPhone X. Apple replaced that with Face ID, its own version of facial recognition which has been prevalent in Android phones since the time Android 4.0 ICS.

"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.

Shares of Finisar leaped nearly 30% at the opening bell Wednesday.

The money will come from a $1 billion fund that Apple established earlier this year to boost US manufacturing jobs.

Apple is going all in on 3D facial recognition with a new investment of $390 million in Finisar, the second-biggest supplier of vertical-cavity surface-emitting lasers (VCSELs) used in the Face ID authentication system of its iPhone X.

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Shares of Finisar rival Lumentum Holdings Inc fell 12 percent to $45.80, which Henderson said validates how important 3D sensing technology is to Apple and other vendors.

The Finisar investment will revive a manufacturing plant in Texas, and should help to create over 500 jobs, according to Apple.

When combined with the company's nearby plant in Allen, Texas, Finisar's payroll in Northern Texas is expected to be $65 million. Apple said that in the current calendar quarter ending December 31, it has bought more than 10 times as numerous lasers as had ever been manufactured over a similar time frame. The first recipient was Corning Incorporated, to which Apple awarded $200 million for glass processing in May. "We're extremely proud that our involvement will help transform another American community into a manufacturing powerhouse", the exec said. Apple has said that the new investment will create 500 high skilled jobs at the com;any. Should you upgrade your iPhone to iOS 11.1?

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