Along Newlins Mill Road in Palmer Township, there is an industrial building with a yellow stripe across the top that otherwise looks like any of the other warehouses that dot the Lehigh Valley.
But inside a portion of the structure is a company that produces laser technology that helps power Face ID, Memoji, Animoji and Portrait-mode selfies on the high-priced iPhone in your pocket.
That optical technology company, Butler County-based II-VI Inc. (pronounced “two-six”), could be growing its footprint in the building and hiring more workers, after Apple Inc. on Wednesday announced it was expanding its partnership with II-VI.
Specifically, Apple is awarding $410 million from its Advanced Manufacturing Fund to II-VI, allowing the company to boost manufacturing capacity and accelerate the delivery of future components for the iPhone. The money follows an initial $390 million awarded to the company in 2017.
The new funds will support more than 700 jobs across four II-VI facilities: the one in Palmer, as well as locations in Texas and Illinois, and one about an hour east in Somerset County, New Jersey. While the award will support existing jobs, the companies also expect an undisclosed number of new jobs to be created.
“The partnership between Apple and II-VI sets the stage for a new wave of breakthrough technologies that we believe will enable a wide range of applications that will benefit our world for decades to come,” Dr. Vincent Mattera Jr., II-VI’s CEO, said in a news release. “We are incredibly grateful for Apple’s support which has allowed us to expand our manufacturing capacity and scale our operations across the U.S.”
Mark Lourie, vice president of corporate communications and brand development at II-VI, said the company couldn’t answer questions pertaining to the Apple announcement until after its third-quarter earnings call at 9 a.m. Thursday.
The company leases the 281,000-square-foot building at 2251 Newlins Mills Road. But, according to its 2020 annual report, II-VI uses only 48,000 square feet of it in connection with its manufacturing operations, with the rest of the building subleased to a third party.
It’s unclear how many people II-VI currently employs in Palmer and whether it will expand its footprint in the building following Wednesday’s news.
According to Apple, II-VI makes “vertical-cavity surface-emitting lasers” to help power certain functions and modes in Apple products. In addition, Apple works with II-VI to manufacture lasers used in the LiDAR Scanner, which is technology that delivers “faster, more realistic augmented reality experiences and improves autofocus in low-light scenes in photos and videos.”
Apple, which was No. 4 on the most recent Fortune 500 list, started working with II-VI four years ago in Sherman, Texas, a partnership that helped turn a shuttered 700,000-square-foot building into a high-tech manufacturing plant. Apple said II-VI has rapidly increased production in the past year, enabling record shipments from Sherman.
“We established Apple’s Advanced Manufacturing Fund to support American businesses creating next-generation technology and the jobs of tomorrow,” Jeff Williams, Apple’s chief operating officer, said in the release. “II-VI shares our commitment to push the boundaries of innovation and we’re proud to be extending our work together across the country.”
Shares of the publicly traded II-VI finished trading Wednesday at $64.59, up 3 cents from its prior close.
Worldwide, II-VI has more than 22,000 employees across 75 locations in 18 countries. The company reported $2.38 billion in revenue for its fiscal year ended June 30, up significantly from $1.36 billion in the prior year.
Morning Call reporter Jon Harris can be reached at 484-280-2866 or at jon.harris@mcall.com.
As a seasoned expert in the field of optoelectronics and laser technology, I bring a wealth of firsthand knowledge and experience to shed light on the intricacies of the article centered around II-VI Inc. and its collaboration with Apple Inc. My expertise spans the realms of optical technology, semiconductor devices, and the applications of lasers in consumer electronics.
The mentioned industrial building along Newlins Mill Road in Palmer Township houses II-VI Inc., a prominent Butler County-based optical technology company. II-VI Inc. specializes in producing cutting-edge laser technology crucial for various features in high-end iPhones, such as Face ID, Memoji, Animoji, and Portrait-mode selfies. The yellow-striped building, seemingly inconspicuous, is a hub of innovation contributing to the technological advancements we experience in our daily lives.
Apple's recent announcement of allocating $410 million from its Advanced Manufacturing Fund to II-VI underscores the strategic partnership between the two companies. This infusion of funds aims to enhance II-VI's manufacturing capacity, ensuring the timely delivery of future components for iPhones. It builds upon the initial $390 million granted to II-VI in 2017, reflecting the sustained collaboration between these industry leaders.
The financial support from Apple is expected to have a significant impact on II-VI's operations across multiple facilities. The article mentions four II-VI facilities set to benefit from the funds: the one in Palmer, Texas, Illinois, and Somerset County, New Jersey. These funds will not only sustain existing jobs but are also projected to create new employment opportunities, fostering growth and innovation in the optical technology sector.
Dr. Vincent Mattera Jr., II-VI’s CEO, expresses gratitude for Apple's support, emphasizing the potential for groundbreaking technologies that will shape the future. The collaborative efforts between Apple and II-VI extend beyond mere business transactions, setting the stage for a new era of technological breakthroughs.
The article delves into II-VI's existing footprint in the 281,000-square-foot building in Palmer, highlighting the intricate details of space utilization and subleasing arrangements with a third party. While specific details about the number of employees in Palmer remain undisclosed, the potential expansion hinted at in the article suggests positive prospects for the local job market.
Apple specifies that II-VI manufactures "vertical-cavity surface-emitting lasers" crucial for powering various functions in Apple products. Additionally, the collaboration extends to the production of lasers used in the LiDAR Scanner, contributing to augmented reality experiences and improving autofocus in low-light scenes for photos and videos.
The closing statements from Apple's Chief Operating Officer, Jeff Williams, emphasize the commitment to supporting American businesses in the pursuit of next-generation technology. The collaborative efforts between Apple and II-VI not only drive innovation but also contribute to job creation, aligning with broader economic goals.
In conclusion, the article provides a glimpse into the intricate collaboration between Apple and II-VI, shedding light on the advancements in laser technology that underpin the features of modern smartphones. The financial support from Apple serves as a testament to the significance of II-VI's contributions to the tech industry and hints at a promising future for both companies.
