Apple Inc. has pledged a $500 billion investment in the U.S. over the next four years, focusing on artificial intelligence and domestic job creation, following a meeting between CEO Tim Cook and President Trump. The investment won’t involve manufacturing iPhones or Macs domestically, as those will still be produced overseas. Apple plans to build a large factory in Texas for AI server production and aims to create over 20,000 R&D jobs nationwide. The investment will also expand Apple TV+ and support U.S. suppliers. Additionally, Apple intends to open a manufacturing academy in Michigan to upskill workers.
Washington DC:
Apple Inc has revealed plans to invest $500 billion in the United States during the next four years of Donald Trump’s presidency. This announcement follows a meeting between Apple CEO Tim Cook and US President Donald Trump. Interestingly, the focus of this investment will not be on manufacturing iPhones, iPads, and MacBooks, which will continue to be produced in China, Taiwan, Vietnam, and India.
ARTIFICIAL INTELLIGENCE
Apple, which operates its own AI platform known as Apple Intelligence, will prioritize this area with the new investment. As part of this effort, the tech giant intends to establish a large factory in Texas to manufacture its AI servers.
RESEARCH JOBS
The company also aims to create over 20,000 research and development positions across the US within the next four years.
SOURCING COMPONENTS
In addition to Apple Intelligence, a portion of the $500 billion investment will be directed toward purchasing components and parts from American suppliers. This includes suppliers like Corning, known for manufacturing glass panels for iPhones.
APPLE TV+
This significant investment will further support the expansion of Apple TV+, which is based in the US. The company plans to fund new television shows, originals, and movies that will be produced in America with this investment.
SEMICONDUCTOR MANUFACTURING
Apple has ambitious plans for semiconductor manufacturing, which heavily relies on the Taiwanese firm Foxconn. The company announced last month that it has commenced mass production of its uniquely designed chips at a facility owned by Taiwan Semiconductor Manufacturing Company in Arizona.
Bringing Foxconn to Arizona and supporting the legislation that eventually became the CHIPS Act to enhance US semiconductor production were significant industrial policy achievements during Donald Trump’s first term.
Apple has also declared its intention to collaborate with Foxconn, formally known as Hon Hai Precision Industry, to construct a massive 250,000-square-foot facility in Houston. This facility will assemble servers used in data centers that power Apple Intelligence, which includes various AI features such as email drafting and other tasks. Presently, these servers are manufactured outside the US.
SKILL ACADEMY
Skill development will be a major focus for the US tech giant, which plans to allocate part of the $500 billion investment to establish a manufacturing academy in Michigan. Here, engineers and academic staff will offer free courses aimed at enhancing the skills of workers in small and medium manufacturing firms. The courses will cover areas such as project management, skill training, factory operations, and optimization of manufacturing processes.
WHAT HAPPENS TO iPHONES AND iPADS AMID TARIFF THREATS?
Apple’s products, including the iPhone, iPad, and MacBook, will continue to be manufactured and assembled in China, Taiwan, Vietnam, and India. In light of Donald Trump’s reciprocal tariffs, imports from China will face a 10 percent tariff upon arrival in the US.
It remains uncertain whether Tim Cook has managed to negotiate an exemption for iPhones produced internationally or if the $500 billion investment pledge is a strategy to mitigate these punitive tariffs.
Following his meeting with Apple CEO Tim Cook, Donald Trump expressed gratitude on his social media platform, Truth Social, for the substantial pledge. He emphasized that this demonstrated Apple’s confidence in the Trump Administration.
Since the announcement on Monday (US time), Apple’s stock has seen an increase of 1.2 percent.
(Inputs from Reuters)