Apple grants Corning another $250 million from Advanced Manufacturing Fund

Posted:
in iPhone edited September 17
Apple announced that it has awarded Corning an additional $250 million from its Advanced Manufacturing Fund, bringing the total to $450 million.

Corning factory cranking out sheets of Gorilla Glass
Corning factory cranking out sheets of Gorilla Glass


Apple has now invested over $1 billion in American companies from its Advanced Manufacturing Fund. This has depleted the entire $1 billion initial investment, and is starting to use the $5 billion it subsequently committed to spend. In addition to the $450 million now awarded to Corning, Finisar has received $390 million, and the Elysis aluminum partnership has been granted $10 million.

"Apple and Corning's rich history dates back more than a decade, and our partnership revolutionized glass and transformed the technology industry with the first iPhone," said Jeff Williams, Apple's chief operating officer. "This award underscores Apple and Corning's shared belief in the vital role that ingenuity plays in creating industry-leading products, and the pride that both companies take in applying American innovation and advanced manufacturing to solve some of the world's toughest technology challenges."

Apple says that every generation of iPhone has used Corning glass, including the iPhone 11 and iPhone 11 pro.

"We're proud of what we've achieved through our collaboration with Apple, and excited by the new opportunities this additional investment creates," said Wendell P. Weeks, Corning's chairman, chief executive officer and president. "This Advanced Manufacturing Fund award will allow us to develop groundbreaking new glass innovations, while also expanding our manufacturing capabilities. Most importantly, our ongoing collaboration allows us to create vital new capabilities for end users and continue pushing the boundaries of what is possible well into the future."

Apple CEO Tim Cook announced the fund on May 3, 2017. The fund goes beyond Apple's $1 billion investment in SoftBank's Vision Fund, a $100 billion resource created to accelerate the development of technology around the world. Some $50 billion of the Vision Fund will be directed toward U.S. endeavors.

Corning's initial award was the first from the fund. That $200 million award was granted later in May 2017.
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Comments

  • Reply 1 of 26
    That’s great! And a great program to invest in America and Americans.
    StrangeDays
  • Reply 2 of 26
    I visited Corning, New York, before. This city has the same name as the company Corning. This entire town exists because of Corning. Corning museum is very interesting and educational. They make anything that has to do with glass .... from glassware to fiber optic to car windshields to space shuttle windshields and everything else in between. This American company is invincible.
  • Reply 3 of 26
    radarthekatradarthekat Posts: 3,150moderator
    georgie01 said:
    That’s great! And a great program to invest in America and Americans.
    Yes, this is an appropriate way to invest in America.  Investing into sustainable new technologies rather than following the Luddite view of creating old-world manual-labor manufacturing jobs.  
    badmonkRayz2016
  • Reply 4 of 26
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    jbdragon
  • Reply 5 of 26
    avon b7avon b7 Posts: 4,302member
    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    The real growth driver at Corning isn't the glass, it is 5G networking equipment and it is protected from Huawei, so they should continue to do well as 5G expands.
    muthuk_vanalingam
  • Reply 6 of 26
    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    You're making assumptions here that aren't supported by facts.  What makes you think Corning doesn't sell GG at a profit?  Certainly nothing in the article.  What makes you think the profit they do generate isn't enough to fund R&D?  Certainly nothing in the article.  Who says Corning needs Apple's money?  No one.  If we're guessing - and we both are - wouldn't a better guess be that Apple is funding research that may not relate to Corning's general line?  They're funding research into tech that will specifically benefit Apple in some way like priority access or supply exclusivity or a totally different tech that's not GG... something in that pipeline Tim's always talking about.  Remember, Corning makes a heckuvalot more than GG.
    Solitmaymacxpressmuthuk_vanalingamfastasleepjony0
  • Reply 7 of 26
    That photo looks doesn't scream "advanced manufacturing" to me.  
    jbdragonjony0
  • Reply 8 of 26
    jbdragonjbdragon Posts: 2,189member
    That photo looks doesn't scream "advanced manufacturing" to me.  
    I was thinking the same thing. Looks a little low tech to me. What kind of cheesy plywood box are they getting these glass looking sheets out of? Using some type of suction device built out of a garage.
  • Reply 9 of 26
    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    Always has to be a naysayer in the group.... *sighs*
  • Reply 10 of 26

    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    You're making assumptions here that aren't supported by facts.  What makes you think Corning doesn't sell GG at a profit?  Certainly nothing in the article.  What makes you think the profit they do generate isn't enough to fund R&D?  Certainly nothing in the article.  Who says Corning needs Apple's money?  No one.  If we're guessing - and we both are - wouldn't a better guess be that Apple is funding research that may not relate to Corning's general line?  They're funding research into tech that will specifically benefit Apple in some way like priority access or supply exclusivity or a totally different tech that's not GG... something in that pipeline Tim's always talking about.  Remember, Corning makes a heckuvalot more than GG.
    Finally someone who gets it. 

    I used to live in the town next to Corning and drove past the Corning, Inc research facilities everyday. Yes, Corning makes a ton of other stuff...stuff we probably use in some form every single day. Fiber is one of their larger products, parts for LCD panels, Diesel filters, of course all kinds of different glass, etc. They make money yes, but Apple wants to make sure they're properly funded for what Apple wants as well. I don't see anything wrong with that. 
    tmayminicoffeefastasleep
  • Reply 11 of 26
    That photo looks doesn't scream "advanced manufacturing" to me.  
    Believe it or not, manual labor is often still required to put things into and get things out of boxes. Warehouses across industries are full of pallets, boxes, and humans to move them around and load onto trucks.
  • Reply 12 of 26
    JWSCJWSC Posts: 552member
    That photo looks doesn't scream "advanced manufacturing" to me.  
    It looks like they’re setting up for a test.  The equipment doesn’t have to be super high tech as long as the test itself is designed well.
  • Reply 13 of 26
    JWSCJWSC Posts: 552member
    macxpress said:

    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    You're making assumptions here that aren't supported by facts.  What makes you think Corning doesn't sell GG at a profit?  Certainly nothing in the article.  What makes you think the profit they do generate isn't enough to fund R&D?  Certainly nothing in the article.  Who says Corning needs Apple's money?  No one.  If we're guessing - and we both are - wouldn't a better guess be that Apple is funding research that may not relate to Corning's general line?  They're funding research into tech that will specifically benefit Apple in some way like priority access or supply exclusivity or a totally different tech that's not GG... something in that pipeline Tim's always talking about.  Remember, Corning makes a heckuvalot more than GG.
    Finally someone who gets it. 

    I used to live in the town next to Corning and drove past the Corning, Inc research facilities everyday. Yes, Corning makes a ton of other stuff...stuff we probably use in some form every single day. Fiber is one of their larger products, parts for LCD panels, Diesel filters, of course all kinds of different glass, etc. They make money yes, but Apple wants to make sure they're properly funded for what Apple wants as well. I don't see anything wrong with that. 
    There’s nothing wrong with Apple funding Corning’s R&D and production effort.  But the original poster “bobroo” had a perfectly valid question.  Companies that are interested in maintaining their growth will set aside a portion of their profits to reinvest in R&D and plant and equipment.  Is Corning not talking to Apple about their plans for future product needs?  It is odd.
    bobroo
  • Reply 14 of 26
    JWSC said:
    macxpress said:
    Finally someone who gets it. 

    I used to live in the town next to Corning and drove past the Corning, Inc research facilities everyday. Yes, Corning makes a ton of other stuff...stuff we probably use in some form every single day. Fiber is one of their larger products, parts for LCD panels, Diesel filters, of course all kinds of different glass, etc. They make money yes, but Apple wants to make sure they're properly funded for what Apple wants as well. I don't see anything wrong with that. 
    There’s nothing wrong with Apple funding Corning’s R&D and production effort.  But the original poster “bobroo” had a perfectly valid question.  Companies that are interested in maintaining their growth will set aside a portion of their profits to reinvest in R&D and plant and equipment.  Is Corning not talking to Apple about their plans for future product needs?  It is odd.
    How is that valid?  There's nothing that implies Corning doesn't set aside a portion of their profits to reinvest in R&D and plants and equipment. In fact, the opposite is true. Based on the way you phrased the bolded sentence, I think you misinterpreted what the article is stating.  Apple is not funding Corning's R&D and production effort.  Corning funds their own R&D and production efforts to the tune of $990 million last year, $860 million in 2017,  and $763 million in 2016. https://www.statista.com/statistics/387730/research-and-development-expenses-of-corning/

    As I said earlier, just guessing, but it makes more sense that Apple is funding something specific and beneficial to Apple... not their entire R&D.
  • Reply 15 of 26
    mjtomlinmjtomlin Posts: 2,028member
    That photo looks doesn't scream "advanced manufacturing" to me.  
    Believe it or not, manual labor is often still required to put things into and get things out of boxes. Warehouses across industries are full of pallets, boxes, and humans to move them around and load onto trucks.

    Unless you’re talking about Amazon.
  • Reply 16 of 26
    That photo looks doesn't scream "advanced manufacturing" to me.  
    I've been to several factories as part of my work and I can assure you that a lot of factories are more like that than the ads portraying what their "factories" look like. This is a factory making glasses we're talking about, not microprocessor fabs.
  • Reply 17 of 26
    Good interview with Jeff Williams at Corning Factory in Kentucky.
    https://www.foxbusiness.com/technology/apple-250-million-glass-technology
    edited September 17
  • Reply 18 of 26
    JWSCJWSC Posts: 552member
    JWSC said:
    macxpress said:
    Finally someone who gets it. 

    I used to live in the town next to Corning and drove past the Corning, Inc research facilities everyday. Yes, Corning makes a ton of other stuff...stuff we probably use in some form every single day. Fiber is one of their larger products, parts for LCD panels, Diesel filters, of course all kinds of different glass, etc. They make money yes, but Apple wants to make sure they're properly funded for what Apple wants as well. I don't see anything wrong with that. 
    There’s nothing wrong with Apple funding Corning’s R&D and production effort.  But the original poster “bobroo” had a perfectly valid question.  Companies that are interested in maintaining their growth will set aside a portion of their profits to reinvest in R&D and plant and equipment.  Is Corning not talking to Apple about their plans for future product needs?  It is odd.
    How is that valid?  There's nothing that implies Corning doesn't set aside a portion of their profits to reinvest in R&D and plants and equipment. In fact, the opposite is true. Based on the way you phrased the bolded sentence, I think you misinterpreted what the article is stating.  Apple is not funding Corning's R&D and production effort.  Corning funds their own R&D and production efforts to the tune of $990 million last year, $860 million in 2017,  and $763 million in 2016. https://www.statista.com/statistics/387730/research-and-development-expenses-of-corning/

    As I said earlier, just guessing, but it makes more sense that Apple is funding something specific and beneficial to Apple... not their entire R&D.
    I read the article just fine.  But I may have misunderstood what you wrote.  Apple may well be finding something specific.  The whole Advanced Manufacturing Fund enterprise appears to be rather vague.  That may be intentional on Apple’s part to obscure what they are really doing.  But we don’t know.
  • Reply 19 of 26
    wizard69wizard69 Posts: 12,902member
    I visited Corning, New York, before. This city has the same name as the company Corning. This entire town exists because of Corning. Corning museum is very interesting and educational. They make anything that has to do with glass .... from glassware to fiber optic to car windshields to space shuttle windshields and everything else in between. This American company is invincible.
    Invincibility isn’t a given.    I can remember when Corning stock was down to a dollars and something.  One bad leader can rapidly destroy a company.  If I remember correctly they brought back retired management to clean things up.   

    Why do i remember this?    The months of kicking myself in the a$$ for not buying that stock when a thousand + shares would have been easy!   
  • Reply 20 of 26
    wizard69wizard69 Posts: 12,902member
    georgie01 said:
    That’s great! And a great program to invest in America and Americans.
    Yes, this is an appropriate way to invest in America.  Investing into sustainable new technologies rather than following the Luddite view of creating old-world manual-labor manufacturing jobs.  
    I have to say you are grossly out of touch with reality here, there is always manual labor no mater how advanced your manufacturing systems. I’ve spent an entire career in automation and can say with confidence that you still need people to run the machines and that often entails very manual work.  This by the way is right here in the USA!  

    While I will not go into details it is amazing to see how manufacturing systems have changed in the last 4 decades.   We have gone from virtually zero automation to some of the most unique and automated production lines on the planet.  Still there are people manning those lines doing manual work.  
    JWSC
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