Laser chip maker Finisar jumps on news that Apple's investing $390 million in the company

• Laser chipmaker Finisar's stock surges following the news of a $390 million Apple investment.
• Finisar's chips enable depth and proximity sensing, making possible some of the iPhone X's standout features like Face ID, Animoji and ARKit.

Laser chipmaker Finisar's stock soared Wednesday following the news of a $390 million Apple investment.

Shares were up 28 percent Wednesday morning.

Apple announced the investment as the second from its $1 billion Advanced Manufacturing Fund. Finisar's chips enable depth and proximity sensing, making possible some of the iPhone X's standout features like Face ID, Animoji and ARKit.

With the investment, Finisar will transform a shuttered, 700,000-square-foot manufacturing plant in Sherman, Texas, into a high-tech facility developing more of the iPhone X-enabling chips.

--CNBC's Josh Lipton contributed to this story.

WATCH: Bernstein senior analyst: Apple could benefit dramatically from tax rate change