“This pledge represents a political gesture towards the Trump administration,” says analyst Gil Luria
Apple announced on Monday that it would invest $500 billion in the United States over the next four years.
These investments will include the establishment of a massive artificial intelligence server factory in Texas and the creation of approximately 20,000 new jobs in research and development across the nation. Everything from purchasing from US suppliers to filming American television shows and movies for Apple’s Apple TV+ service is included in that anticipated $500 billion spending.
The company refused to say that it was already planning to spend with its American supply base, including firms like Corning that make glass for iPhones in Kentucky.
After the media report, the step comes that Apple CEO Tim Cook met President Donald Trump last week. Many of Apple’s products that have gathered in China may face 10% tariffs imposed by Trump earlier this month, although the iPhone manufacturer had some discounts from China. tariffs during the first Trump administration.
Analyst Gil Luria of DA Davidson stated, “This pledge represents a political gesture towards the Trump administration.” He estimated that Apple has already committed to spending more than $150 billion annually in the United States, including capital expenditures and cost of goods sold. “They would only need three to four years to meet their obligation even without growing that spend very much.” During the first Trump administration in 2018,
Apple made a similar announcement regarding its plans for spending in the United States. The company stated that its ongoing and new investments would contribute $350 billion to the US economy over the course of five years. The shares of the business were up 1.2%. In a post on Truth Social,
Trump thanked Apple and Cook and said that the move showed that the company trusted his administration. Most of Apple’s consumer products are assembled outside the US, though many of Apple’s components are still made there, including chips from Broadcom, Skyworks Solutions and Qorvo.
Apple said that last month it began to produce large-scale products of its own design at the Arizona factory owned by the Taiwan Semiconductor Manufacturing Company.
During her first term, Trump’s two largest industrial policy moves were bringing TSMC to Arizona and assisting at the beginning of the law to promote American semiconductor production, which would later be formed.
Apple said on Monday that it will work with Foxconn, which is formally known as the Honourable Prosecons Industry, to build a 250,000 square foot facility in Houston, where it will gather the server that data centres will gather the data centres power. Apple Intelligence, a suite of AI facilities, helps to perform email drafts and other functions.
Those servers are currently built outside the US, said Apple.
Apple said that it is planning to increase its advanced manufacturing fund from $5 billion to $10 billion, with part of the expansion in the Arizona factory of TSMC to “multibillion-dollar from Apple to produce an advanced silicon in the Arizona factory. There is commitment.”.
Apple did not disclose the details of its deal with TSMC but has used funds in the past to help partners to manufacture the infrastructure required to distribute products or services for Apple.
Apple will also open a manufacturing academy in Michigan, where its engineers will provide free courses for small and medium -sized manufacturing firms in areas such as project management and manufacturing process adaptation, along with local university employees.