Laser chipmaker Finisar Corporation (NASDAQ: FNSR) surged over 28 percent on Wednesday after Apple Inc. (NASDAQ: AAPL) announced a $390 million investment in the company.
This is the second investment form Apple’s $1 billion Advanced Manufacturing Fund, which is designed to encourage innovative production and highly skilled jobs. In May, the fund made its first investment in Corning, a company that manufacturing specialty glass and ceramics.
Apple said the investment will help Finisar to increase the production of vertical-cavity surface-emitting lasers (VCSELs), which will help power some of Apple's new features, including Face ID, Animoji, and ARKit,
"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.
Finisar shares jumped as much as 28 percent to $24.86 in the early trading in New York.
Finisar CEO Jerry 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 incredibility exciting features."
Finisar will transform a long-shuttered 700,000-square-foot manufacturing plant in Sherman, Texas, into the high-tech facility.