Apple has set its site on its next manufacturing plant in Mesa, Ariz., PC Magazine reported Tuesday.
"Apple is indisputably one of the world's most innovative companies and I'm thrilled to welcome them to Arizona," Jan Brewer, Arizona Gov. Jan Brewer told PC Magazine. "Apple will have an incredibly positive economic impact for Arizona and its decision to locate here speaks volumes about the friendly, pro-business climate we have been creating these past four years. "(Apple's) investment in renewable energy will also be greening our power grid, and creating significant new solar and geothermal power sources for the state."
The plant will produce a minimum 700 jobs in its first year of existence, and 1,300 construction jobs, along with others.
Apple and GT Advanced Technologies will also collaborate on the endeavor where GT is expected to possess and manage the structure's advanced sapphire furnaces, along with similar equipment under terms of the project's multi-year agreement.
"Sapphire is much more expensive than Gorilla Glass, heavier, and has other shortcomings; however, it is widely viewed as more difficult to scratch," Brian White, an analyst at Cantor Fitzgerald told PC Magazine. "Today, we believe Apple uses sapphire to protect the camera on new iPhones and on the Touch ID home button on the iPhone 5s. As such, we believe sapphire could be well suited for a high-end device and/or small form factor devices like the rumored iWatch. Ultimately, we believe Apple will further segment the iPhone market with an ultra-high-end iPhone, which would be less price sensitive and another potential use case for sapphire. Today, GTAT manufactures sapphire for use in general lighting, while new growth areas are emerging such as camera lenses and mobile device-related applications."
According to PC Magazine, Apple is giving GT a $578 million pre-payment, which GT will then reimburse the company for throughout a five year period beginning in 2015.
