(Reuters) - Apple Inc said on Wednesday it would invest $390 million (£292.1 million) in Finisar Corp, which it will use to build out a plant in Texas to make chips that power popular iPhone features such as face ID, animojis and portrait-mode selfies.
The award will be part of Apple's $1 billion "Advanced Manufacturing Fund" to foster innovation and create jobs, Apple said in a statement.
Finisar will use the funds to transform a shuttered, 700,000-square-foot manufacturing plant in Texas to a facility developing vertical-cavity surface-emitting laser (VCSEL) chips.
Shares of Finisar were up nearly 17 percent at $22.50 in premarket trading, while Apple shares were flat.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Savio D'Souza)