Monday, 10 March, 2025
Global tech giant Apple announced on Monday that it plans to invest $500 billion in the United States over the next four years, including the construction of a massive artificial intelligence server factory in Texas. The investment will also lead to the creation of approximately 20,000 research and development jobs nationwide.
The $500 billion investment encompasses a broad range of expenditures, including purchases from US suppliers and funding for television and film productions for its Apple TV+ streaming service. However, the company did not disclose how much of this amount was already allocated to its existing US supply chain, which includes firms such as Corning, a Kentucky-based manufacturer of iPhone glass.
This announcement follows reports that Apple CEO Tim Cook recently met with President Donald Trump. The meeting comes at a time when many Apple products assembled in China are facing potential 10% tariffs imposed by Trump earlier this month. While Apple secured some tariff exemptions during the first Trump administration, the current situation remains uncertain as trade policies continue to evolve.
"This pledge represents a political gesture towards the Trump administration," said Gil Luria, analyst at DA Davidson, noting that the $500 billion likely includes all of Apple's spending in the US, including general and administrative costs.
"It is unclear whether this announcement represents an acceleration in spend."
Apple made a similar announcement about its US spending plans in 2018, during the first Trump administration, when it said its new and ongoing investments would contribute $350 billion to the US economy over five years.
Shares were down 0.8 per cent in pre-market trading.
Trump, in a Truth Social post, thanked Apple and Cook, saying the move reflected the company's faith in his administration.
Most of Apple's consumer products are assembled outside the US, though many of Apple components are still made there, including chips from Broadcom, SkyWorks Solutions and Qorvo.
Apple said it last month started mass-producing chips of its design at an Arizona factory owned by Taiwan Semiconductor Manufacturing Co.
Bringing TSMC to Arizona and helping introduce legislation that later became the CHIPS Act to bolster US semiconductor production were two of Trump's biggest industrial policy moves during his first term.
Apple said on Monday it will work with Foxconn, formally known as Hon Hai Precision Industry, to build a 250,000-square-foot facility in Houston, where it will assemble servers that go into data centres to power Apple Intelligence, its suite of AI features that help draft emails and perform other tasks. Those servers are currently made outside of the US, Apple said.
Apple said it plans to increase its Advanced Manufacturing Fund from $5 billion to $10 billion, with part of the expansion being a "multibillion-dollar commitment from Apple to produce advanced silicon" at TSMC's Arizona factory.
Apple did not disclose details of its deal with TSMC, but it has in the past used the fund to help partners build out the infrastructure needed to deliver products or services for Apple.
Apple will also open a manufacturing academy in Michigan where its engineers, along with local university staff, will offer free courses for small and mid-sized manufacturing firms in areas such as project management and manufacturing process optimisation.
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Global tech giant Apple announced on Monday that it plans to invest $500 billion in the United States over the next four years, including the construction of a massive artificial intelligence server factory in Texas. The investment will also lead to the creation of approximately 20,000 research and development jobs nationwide.
The $500 billion investment encompasses a broad range of expenditures, including purchases from US suppliers and funding for television and film productions for its Apple TV+ streaming service. However, the company did not disclose how much of this amount was already allocated to its existing US supply chain, which includes firms such as Corning, a Kentucky-based manufacturer of iPhone glass.
This announcement follows reports that Apple CEO Tim Cook recently met with President Donald Trump. The meeting comes at a time when many Apple products assembled in China are facing potential 10% tariffs imposed by Trump earlier this month. While Apple secured some tariff exemptions during the first Trump administration, the current situation remains uncertain as trade policies continue to evolve.
"This pledge represents a political gesture towards the Trump administration," said Gil Luria, analyst at DA Davidson, noting that the $500 billion likely includes all of Apple's spending in the US, including general and administrative costs.
"It is unclear whether this announcement represents an acceleration in spend."
Apple made a similar announcement about its US spending plans in 2018, during the first Trump administration, when it said its new and ongoing investments would contribute $350 billion to the US economy over five years.
Shares were down 0.8 per cent in pre-market trading.
Trump, in a Truth Social post, thanked Apple and Cook, saying the move reflected the company's faith in his administration.
Most of Apple's consumer products are assembled outside the US, though many of Apple components are still made there, including chips from Broadcom, SkyWorks Solutions and Qorvo.
Apple said it last month started mass-producing chips of its design at an Arizona factory owned by Taiwan Semiconductor Manufacturing Co.
Bringing TSMC to Arizona and helping introduce legislation that later became the CHIPS Act to bolster US semiconductor production were two of Trump's biggest industrial policy moves during his first term.
Apple said on Monday it will work with Foxconn, formally known as Hon Hai Precision Industry, to build a 250,000-square-foot facility in Houston, where it will assemble servers that go into data centres to power Apple Intelligence, its suite of AI features that help draft emails and perform other tasks. Those servers are currently made outside of the US, Apple said.
Apple said it plans to increase its Advanced Manufacturing Fund from $5 billion to $10 billion, with part of the expansion being a "multibillion-dollar commitment from Apple to produce advanced silicon" at TSMC's Arizona factory.
Apple did not disclose details of its deal with TSMC, but it has in the past used the fund to help partners build out the infrastructure needed to deliver products or services for Apple.
Apple will also open a manufacturing academy in Michigan where its engineers, along with local university staff, will offer free courses for small and mid-sized manufacturing firms in areas such as project management and manufacturing process optimisation.
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