Apple has created a fund to drive innovation, stimulate the economy, and create a greater competitive edge. The Apple Advanced Manufacturing Fund is a $1 billion initiative allocated for heavy investment into manufacturing. It will drive companies to pursue new high-tech means of manufacturing and help Apple continue to release cutting-edge products, all while creating American jobs in the process.

Here’s how it works: Apple has numerous subcontractors that they use to manufacture different components of their phones. In order to keep those companies on the cutting edge, Apple gives them prepayments so that the companies can use that money to grow, hire more employees, and experiment with new methods.

It’s a dangerous game on Apple’s behalf that doesn’t always work out in their favor. In 2013, Apple stopped reporting how much money was left outstanding as a result from their prepayments; the last outstanding amount on record was $3.3 billion – a small amount considering how much the company has grown since then. Regardless, this method of investing has proven highly effective for Apple.

Last year, Apple awarded Finisar $390 million. Finisar, a producer of high-tech optical communications components, has agreed to open a new 700,000 square foot facility in Texas where it will begin to explore new methods of advanced laser production.

Finisar is just one of the many examples of company’s that are benefiting from Apple’s investment into manufacturing. Apple has helped create and support over two million jobs throughout the United States, and with investments like this, we can expect to see that number continue to rise.

As we advance into the future, it’s important that we continue to adapt and refine our manufacturing methods to keep up with modern-day trends.