Dive Brief:
- Apple Inc. on Monday said it will commit $500 billion to U.S. manufacturing over the next four years, marking the largest-ever investment by the tech giant as the Trump administration looks to onshore factory jobs.
- As part of the commitment, Apple and its partners will open a new facility in Houston by 2026 that makes servers for its artificial intelligence system, according to a release.
- The company also plans to double its U.S. Advanced Manufacturing Fund to $10 billion, create a training academy in Detroit for upskilling workers and grow its investments in research and development. The fund was created in 2017 to support advanced manufacturing and skills development across the country.
Dive Insight:
The blockbuster commitment — which includes creating 20,000 jobs — comes as Apple and other Silicon Valley companies look to avoid tariffs on tech-related imports from China and other countries.
The Cupertino, California-based company has made similar investments over the years. In 2021, Apple said it would invest $430 billion in the U.S. to accelerate silicon engineering and 5G technology. In 2018, the company also said it would make a $350 billion contribution to U.S. manufacturing, including the creation of 20,000 jobs over the next five years.
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments,” CEO Tim Cook said in a statement Monday.
Apple’s latest move is expected to support initiatives related to AI, silicon engineering and skills development for students and workers nationwide.
As part of the pledge, the iPhone maker said it plans to open a 250,000-square-foot facility in Houston next year that produces energy-efficient servers for its Apple Intelligence and Private Cloud Compute systems. As AI systems roll out, Apple said it plans to continue expanding data center capacity in North Carolina, Iowa, Oregon, Arizona and Nevada.
Apple is also expanding its advanced manufacturing fund, which includes a multi-billion-dollar commitment to produce silicon in a TSMC facility in Arizona. Apple is the facility’s top customer and mass production of the company’s chips began last month, the company said. To date, the fund has supported projects in 13 states, including Kentucky, Pennsylvania, Texas and Indiana.
In addition to the Houston facility, Apple said it will open a manufacturing academy in Detroit to help small and mid-sized companies implement AI and smart manufacturing techniques in their operations.
Currently, Apple supports more than 2.9 million jobs across the country, including direct employment and work with suppliers, manufacturers and app developers, according to a release.
Last week, President Donald Trump signaled a move from Apple was coming at a recent meeting with U.S. governors, saying that Cook has stopped “two plants in Mexico” and will build products domestically, Bloomberg reported Friday.
Apple has not yet confirmed publicly whether production would be shifting from Mexico to the U.S. and did not immediately respond to a request for comment on the matter.
Following the announcement, Trump touted the investment as a win for his administration through his social media account on Truth: “THE REASON, FAITH IN WHAT WE ARE DOING, WITHOUT WHICH, THEY WOULD’NT BE INVESTING TEN CENTS. THANK YOU TIM COOK AND APPLE!!!”
