Apple has announced plans to invest more than $500 billion in the US over the next four years. The money will be used to build a server manufacturing facility in Houston, produce silicon chips in Arizona, establish a manufacturing academy in Detroit, and create 20,000 new jobs.
As The New York Times reports, the announcement follows Apple CEO Tim Cook’s meeting with President Trump last week. After that meeting, Trump said Apple would invest in the US to avoid paying tariffs. Trump imposed a 10% tariff on Chinese-manufactured goods, effective Feb. 4, and he’s threatened to impose a 25% tariff on foreign-made chips.
The first major undertaking of the investment plan would be a 250,000-square-foot server manufacturing facility in Houston, Texas. The facility will open in 2026, and the servers made there will power Apple Intelligence and its off-device Private Cloud Compute.
Apple has also committed to expanding its existing data center capacities in North Carolina, Iowa, Oregon, Arizona, and Nevada.
Apple’s investment in its US Advanced Manufacturing Fund will also double, from $5 billion to $10 billion. The fund was established in 2017 to create high-skilled manufacturing jobs in the country. Now, from the added funds, multiple billions will be allocated to produce Apple silicon chips in TSMC’s Fab 21 facility in Arizona, where mass production began last month.
According to Bloomberg’s Mark Gurman, “The Apple Intelligence servers for Private Cloud Compute will see some production shift from China to Houston with a new Foxconn facility. The chips in the servers are M-series and continue to be produced at TSMC in Taiwan. The TSMC facility in Arizona is making older chips.”
Furthermore, in the next four years, Apple plans to hire around 20,000 people in fields such as R&D, silicon engineering, software development, AI, and machine learning.
Recommended by Our Editors
In Detroit, Apple plans to open the Apple Manufacturing Academy. Apple has not specified when the academy will open but said that it will, along with experts from top universities such as Michigan State, “consult with small- and medium-sized businesses on implementing AI and smart manufacturing techniques.” The academy will also offer free in-person and online courses on project management and manufacturing process optimization.
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investments with this $500 billion commitment to our country’s future,” Cook said in the announcement.
In 2018, during Trump’s first term, Apple said it would “contribute” $350 billion to the US economy, earning praise from the president. As CNBC notes, that money included “a tax bill of $38 billion, $5 billion toward manufacturing, $30 billion in capital expenditures, $55 billion in yearly payments to suppliers, and the creation of 20,000 new jobs.”
Apple Fan?
This newsletter may contain advertising, deals, or affiliate links.
By clicking the button, you confirm you are 16+ and agree to our
Terms of Use and
Privacy Policy.
You may unsubscribe from the newsletters at any time.
About Jibin Joseph
Contributor
