Apple Invest $410 Million into Optical Manufacturer II-VI

ith Apple potentially unveiling its secretive augmented reality headset later this year with plans to launch the device next year, the company has made a strategic investment to enhance the efficiency of its supply chain.

Earlier this week, Apple announced an award of $410 million from its Advanced Manufacturing fund to II-VI, an optics manufacturer that supplies Apple with LiDAR sensors, which are embedded in its iPhone Pro and iPad Pro devices. LiDAR enables fast depth sensing for more realistic augmented reality experiences and is expected to fill the same role in Apple's AR headset.

As well as making LiDAR sensors,  II-VI also manufactures vertical-cavity surface-emitting lasers (VCSELs), which are found in the depth-sensing front-facing TrueDepth camera of iPhone X and newer devices

TrueDepth powers features like Memojis and Animojis as well as more robust augmented reality lenses for Snapchat and the virtual try-on tool in the Glasses app for Warby Parker.

A statement posted to Apple’s website wrote:

"The expansion of the company's long-standing relationship with II-VI will create additional capacity and accelerate delivery of future components for iPhone, with 700 jobs in Sherman, Texas; Warren, New Jersey; Easton, Pennsylvania; and Champaign, Illinois," 

Back in 2017, Apple awarded $390 million to Finisar, which produced VCSELs for the TrueDepth camera. Subsequently, II-VI acquired Finisar in 2019.

It appears that the latest investment is just the tip of the iceberg when it comes to Apple’s long term plans. Apple has committed to spending $430 billion over the next five years to add 20,000 new jobs and expand its research and development bench strength in the areas of silicon engineering, 5G, and manufacturing, which will, in turn, serve to iterate on its augmented reality hardware. This includes a new campus in North Carolina, a hotbed for tech talent.

Apple’s devices have provided the foundations for its future augmented reality wearable technology. With regards to software, Apple's ARKit toolkit enables developers to leverage devices’ sensors and build AR apps, while Apple's own apps, including Clips with its new AR Spaces feature, demonstrates one way the company can make most of its AR ecosystem. Additionally, Apple has introduced hardware components, like the LIDAR sensors and TrueDepth cameras for depth sensing and its U1 chips for spatial awareness, that expand the augmented reality capabilities of its devices.

By making these mobile augmented reality efforts, it introduces consumers to AR experiences while serving as real world prototyping and testing for the next era of computing. As if the rumours are true, we can expect the LiDAR to make the transition from smartphones and tablets to augmented reality wearables in the not-too-distant future.