Apple is planning to open a new manufacturing plant in Arizona in partnership with mineral crystal specialist GT Advanced Technologies.
The iPhone maker has signed a multi-year agreement with GT to deliver sapphire material as well as operate ASF furnaces and equipment needed to produce materials for electronic devices.
Apple will give GT a prepayment of about $578m, which is expected to be reimbursed over five years, starting in 2015.
Apple spokeswoman Kristin Huguet said the company said the new facility would create more than 2,000 jobs in engineering, manufacturing and construction.
"This new plant will make components for Apple products and it will run on 100% renewable energy from day one," Huguet added.
GT president and CEO Tom Gutierrez said: "By leveraging the new materials operation and our enhanced R&D efforts, we will be well positioned to drive the growth of other sapphire opportunities, including the expansion of our LED and industrial sapphire businesses in partnership with our ASF customers," Gutierrez said.
Sapphire, which is a transparent material used in production of LEDs, is expected to be used in the fingerprint sensors for Apple’s iPhone 5S.
