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 and the addition of approximately 20,000 research and development jobs nationwide.
The announcement follows reports that Apple CEO Tim Cook met with Donald Trump last week. Many Apple products, which are assembled in Ch
ina and imported into the U.S., could be subjected to the 10% tariffs introduced by the White House earlier this month. However, Apple previously secured some exemptions from China tariffs during Trump’s first administration.
This is not the first time Apple has made a major investment announcement during a Trump presidency. In 2018, during Trump’s first term, Apple committed to contributing $350 billion to the U.S. economy over five years through new and ongoing investments.
The newly announced $500 billion investment includes spending on a range of areas, from purchases from U.S. suppliers to the production of Apple TV+ films and television shows in the U.S. Apple declined to specify how much of this spending was already planned for its U.S. supply base, which includes companies like Corning, a Kentucky-based manufacturer that produces glass for iPhones.
Impact on U.S. Manufacturing
Trump responded to the announcement on Truth Social, thanking Apple and Cook, stating that the investment demonstrated the company’s confidence in his administration.
Although some Apple components, such as chips from Broadcom, Skyworks Solutions, and Qorvo, are made in the U.S., the majority of Apple’s consumer products are still assembled overseas, primarily in China. The proposed 10% tariff could significantly increase the cost of Apple’s flagship product, the iPhone, in its home market.
Apple revealed that it has begun mass-producing its own chip designs at an Arizona facility operated by Taiwan Semiconductor Manufacturing Co (TSMC).
“Apple is the largest customer at this state-of-the-art facility, which employs more than 2,000 workers to manufacture the chips in the United States,” the company stated in its blog post announcing the investment.
Apple Company (Photo: Mike Segar)
Semiconductor Industry and Policy Changes
TSMC, which is responsible for an estimated 90% of the world’s most advanced semiconductors, was brought to Arizona in part due to legislative efforts that resulted in the Chips Act, aimed at strengthening U.S. semiconductor manufacturing. This was one of Trump’s most significant industrial policies during his first term.
Now, reports indicate that Trump is considering changes to the Chips Act, which was signed under the Biden administration and allocated $30 billion in subsidies to chip manufacturers building factories in the U.S. However, Trump has suggested that companies like TSMC do not need direct funding but rather an “incentive.”
“And the incentive is going to be they’re not going to want to pay at 25, 50 or even 100% tax,” Trump said, according to the Associated Press.
AI Expansion and Manufacturing Initiatives
Apple also announced plans to collaborate with Foxconn, formally known as Hon Hai Precision Industry, to construct a 250,000-square-foot facility in Houston. This facility will assemble servers used in data centers that power Apple Intelligence, the company’s suite of AI features designed to assist with tasks such as drafting emails.
Currently, these servers are manufactured outside of the U.S. Apple also stated it will expand its existing data centers in North Carolina, Iowa, Oregon, Arizona, and Nevada.
Additionally, Apple plans to increase its Advanced Manufacturing Fund from $5 billion to $10 billion. As part of this expansion, Apple is making a “multibillion-dollar commitment” to producing advanced silicon at TSMC’s Arizona factory.
While Apple did not disclose the specifics of its agreement with TSMC, the fund has previously been used to help partners build the infrastructure necessary to develop Apple products and services.
The announcement comes amid reports that TSMC is in discussions with Intel to acquire its chip-making plants, a move reportedly encouraged by the Trump administration. Intel has struggled to compete with TSMC, and currently, most of its chips are still manufactured in Taiwan.
Investment in Workforce Development
Apple also announced the launch of a new manufacturing academy in Michigan, where Apple engineers, alongside local university faculty, will offer free courses to small and mid-sized manufacturing businesses.
These courses will focus on project management and optimizing manufacturing processes, aiming to enhance the capabilities of U.S.-based manufacturers.
