Apple announced on Monday a commitment to invest $500 billion in expanding U.S. facilities over the next four years, a move that could help mitigate the impact of new tariffs on goods imported from China. The investment is expected to create 20,000 jobs. Earlier this month, President Donald Trump announced a 10% tariff on all imports from China, a country from which Apple imports many products, including most of its iPhones. Following a meeting with Apple CEO Tim Cook, Trump indicated that Apple was planning this significant investment, attributing it to his tariff policies. “He’s investing hundreds of billions of dollars, I hope he’s announced it,” Trump said. “That’s what he told me … But he’s investing hundreds of billions of dollars. And others, too, a lot of chip makers coming in, a lot of automakers coming in.” Apple has been diversifying its supply chain outside of China in recent years, partly due to production challenges during the pandemic. This includes establishing a production facility for Mac Pro computers in Texas. Additionally, TSMC, which manufactures chips for Apple, is set to open a chipmaking plant in Arizona, supported by $6.6 billion from a bipartisan bill passed during the Biden administration to boost U.S. chip manufacturing. Despite these efforts, Apple has primarily expanded production in countries like India and Vietnam. “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,” said Cook in a company statement. Trump publicly thanked Cook and Apple for the announcement on Truth Social, crediting his policies for the decision. Apple, which relies on contractors for manufacturing, plans to collaborate with thousands of manufacturing partners across all 50 states to increase production in U.S. facilities. Part of the investment will establish an academy in Detroit to train small- and medium-sized businesses in AI and smart manufacturing techniques. Production of servers supporting Apple Intelligence, the company’s AI product line, will begin in Houston later this year. The 250,000-square-foot facility, set to open in 2026, will create thousands of jobs. Apple emphasized that the servers are integral to its AI initiatives. Not all of the $500 billion will be allocated to hardware production. The investment also includes expanding data center capacity in North Carolina, Iowa, Oregon, Arizona, and Nevada, as well as plans to invest in corporate facilities and Apple TV+ show production across 20 states. — news from CNN
