Apple plans $500 billion US Investment with 20,000 Jobs

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Apple announced on Monday its plans to support the development of a 250,000-square-foot facility in Texas by 2026, dedicated to manufacturing artificial intelligence servers. This initiative will coincide with the addition of approximately 20,000 research and development jobs across the United States.

 

As part of a broader investment strategy, Apple revealed its intention to spend $500 billion in the U.S. over the next four years. This figure encompasses expenditures ranging from purchases from American suppliers to domestic film production for Apple TV+. However, the company did not specify how much of this budget was already earmarked for its current U.S. supply base, which includes companies such as Corning, the manufacturer of iPhone glass in Kentucky.

 

The decision to bolster domestic investments follows reports that Apple CEO Tim Cook recently met with former President Donald Trump. The meeting came amid concerns that Apple products assembled in China could be subject to a 10% tariff imposed by Trump earlier this month. In the past, Apple had secured exemptions from tariffs on Chinese imports during Trump's first term.

 

This latest financial commitment mirrors a previous announcement made during Trump's first administration, in which Apple committed to spending $350 billion over five years. While the majority of Apple’s products continue to be assembled abroad, key components are still produced in the U.S. Chips for Apple devices are manufactured domestically by companies such as Broadcom, SkyWorks Solutions, and Qorvo. Additionally, Apple recently commenced mass production of its own chip designs at an Arizona factory owned by Taiwan Semiconductor Manufacturing Co (TSMC).

 

One of Trump’s significant industrial policy moves during his first term was attracting TSMC to Arizona and championing legislation that led to the CHIPS Act, which aims to enhance semiconductor production in the U.S. Apple’s latest announcement aligns with these efforts, as the company will partner with Hon Hai Precision Industry, commonly known as Foxconn, to construct the Houston-based server manufacturing facility. These servers, which are integral to Apple Intelligence—Apple’s suite of AI-driven features—are currently produced outside the United States.

 

Apple also stated that it would expand its Advanced Manufacturing Fund from $5 billion to $10 billion. Part of this expansion includes a "multibillion-dollar commitment from Apple to produce advanced silicon" at TSMC's Arizona facility. While the company did not disclose the specifics of its agreement with TSMC, it has previously used this fund to help suppliers develop the necessary infrastructure to meet Apple’s production demands.

 

Furthermore, Apple announced plans to establish a manufacturing academy in Michigan. This initiative will offer free courses in areas such as project management and manufacturing process optimization. The academy will be staffed by Apple engineers in collaboration with local university professionals, with the goal of supporting small and mid-sized manufacturing firms.

 

Apple’s continued investment in American manufacturing and technology underscores its efforts to strengthen its domestic supply chain while advancing AI-driven innovations.

 

Based on a report by Reuters  2025-02-24