The tech giant revealed that it aims to invest $500 billion in the U.S. over the next four years. This investment encompasses a wide range of expenditures, including purchases from American suppliers and the production of television shows and films for its Apple TV+ platform. However, Apple did not disclose the portion of this investment that is already allocated to its existing U.S. supply chain, which includes companies like Corning, known for manufacturing glass for iPhones in Kentucky.
This announcement follows reports of a meeting between Apple CEO Tim Cook and President Donald Trump last week. Many of Apple's products, primarily assembled in China, may be subject to a 10% tariff imposed by Trump earlier this month, although the company had previously received some exemptions from tariffs during Trump's first term.
Apple had made a similar commitment regarding its U.S. investments during Trump's first administration, pledging $350 billion over a five-year period.
While most of Apple's consumer products are assembled overseas, a significant number of components, such as chips from Broadcom, SkyWorks Solutions, and Qorvo, are produced in the U.S. Furthermore, Apple recently commenced mass production of its own chip designs at a factory in Arizona operated by Taiwan Semiconductor Manufacturing Co (TSMC).
The establishment of TSMC in Arizona and the support for legislation that led to the CHIPS Act, aimed at enhancing U.S. semiconductor manufacturing, were key elements of Trump's industrial policy during his initial term.
Apple announced on Monday its collaboration with Hon Hai Precision Industry's Foxconn to establish a 250,000-square-foot facility in Houston. This site will focus on assembling servers intended for data centers that support Apple Intelligence, a collection of AI functionalities designed to assist with tasks like email drafting. Currently, these servers are produced outside the United States, according to Apple.
Additionally, Apple revealed plans to double its Advanced Manufacturing Fund from $5 billion to $10 billion. This increase includes a significant investment from Apple aimed at producing advanced silicon at TSMC's factory in Arizona. While specific details regarding the agreement with TSMC were not provided, Apple has previously utilized this fund to assist partners in developing the necessary infrastructure for delivering Apple-related products and services.
Furthermore, Apple will launch a manufacturing academy in Michigan, where its engineers, in collaboration with local university personnel, will provide complimentary courses to small and mid-sized manufacturing companies. These courses will cover topics such as project management and optimization of manufacturing processes.