Apple, the tech giant on Monday announced that it would spend $500B in US as investments in the next four years. This is Apple’s biggest committed investment in US till date. The Apple’s investment in US will include a giant factory in Texas for artificial intelligence (AI) servers. This will add about 20,000 research and development jobs across US.
The AI factory in Texas that is to create jobs with a focus on research and development, silicon engineering, software development, and artificial intelligence (AI) and machine learning. As part of this expansion, Apple will establish a new manufacturing facility in Houston, Texas, set to begin operations in 2026. This site will focus on assembling servers crucial to Apple’s AI technology, a move expected to generate thousands of jobs and contribute significantly to local employment.
Apple’s $500B US investment
Tim Cook, Apple’s CEO said, “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.”
The investment of $500B could be for purchases from US suppliers, for Apple TV+ service. Though Apple refrained from disclosing actual spend figure. This investment by Apple is aimed towards helping businesses transition to advanced manufacturing techniques by reinforcing US’s technological capabilities and thereby creating jobs.
Tariff in China
The move comes after media reports that Apple CEO Tim Cook met President Donald Trump last week. Many of Apple’s products that are assembled in China could face 10% tariffs imposed by Trump earlier this month.
His administration promoted domestic manufacturing by imposing tariffs on Chinese imports. This includes semiconductors, automobiles, and pharmaceuticals.
Apple’s supply chain
Apple’s current supply chain already includes 24 silicon manufacturing facilities across 12 states, including Arizona, Colorado, Oregon, and Utah. With this investment, the company underscores its commitment to strengthening US-based innovation and technological development, further cementing its role as a leading force in the technology sector.
Most of Apple’s consumer products are assembled outside the US, though many of Apple components are still made there, including chips from Broadcom, Skyworks Solutions and Qorvo.
In January Apple has started to mass produce chips of its own design at an Arizona factory owned by Taiwan Semiconductor Manufacturing Co.
Apple and Foxconn partnership
On Monday, Apple also announced that it will work with Foxconn, to build a 250,000-square-foot facility in Houston, for servers assembly.
Apple said it plans to increase its Advanced Manufacturing Fund from $5 billion to $10 billion, with part of the expansion being a “multibillion-dollar commitment from Apple to produce advanced silicon” at TSMC’s Arizona factory.
Stock update
Apple’s share price was up by 1.55% at $247.10. Meanwhile. stocks drifted lower on Monday to compound their sharp losses from last week. The S&P 500 was down by 0.5%.
