Apple is investing in Finisar, which makes iPhone X facial identification tech

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Apple said Wednesday it will invest $390 million in a Texas-based manufacturer that creates technology used in the iPhone X.

Finisar, based in Sherman, Texas, creates optical communications components. Apple said the grant will help Finisar boost production of vertical-cavity surface-emitting lasers (VCSELs), used on the iPhone's X's TrueDepth camera.

The VCSELs help power the most important features on the iPhone X: Face ID, portrait mode selfies and animojis, or animated emojis.

As part of the award, Finisar will transform its 700,000-square-foot manufacturing plant "into the high-tech VCSEL capital of the U.S.," said Apple.

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The tech giant said the award will also create more than 500 high-skill jobs, including engineers, technicians and maintenance teams.

The grant comes from Apple's $1 billion Advanced Manufacturing Fund, started to foster innovation and create high-tech jobs for U.S. companies. The first recipient was Corning Incorporated, the makers of Gorilla Glass, used for smartphones by headset makers including LG and Samsung.

It's likely Apple expands use of the VCSEL technology beyond iPhone X to future models of its flagship smartphone. Apple said the technology is "better performing, more compact and cost-efficient" that standard edge-emitting lasers.

Follow Brett Molina on Twitter: @brettmolina23.