Apple announced Monday that it will invest $500 billion in the United States over the next four years, including the construction of a massive artificial intelligence server facility in Texas and the creation of roughly 20,000 new research and development positions nationwide.
The estimated $500 billion in spending covers everything from buying products from American vendors to producing TV series and films in the US for its Apple TV+ service.
The business declined to disclose how much it was already planning to spend with its U.S. supply base, which includes firms such as Corning that makes glass for iPhones in Kentucky.
Following media reports that Apple CEO Tim Cook met with President Donald Trump last week, the action was taken.
Although the iPhone manufacturer had obtained some exemptions from China tariffs during the first Trump administration, many of Apple’s Chinese-assembled products may be subject to 10% tariffs imposed by Trump earlier this month.
“This pledge represents a political gesture towards the Trump administration,” said Gil Luria, analyst at D.A. Davidson, noting that the $500 billion likely includes all of Apple’s spending in the U.S., including general and administrative costs.
“It is unclear whether this announcement represents an acceleration in spend.”
When Apple announced its U.S. spending intentions in 2018, during the first Trump administration, it estimated that its continuing and new investments will boost the U.S. economy by $350 billion over five years.
Before the market opened, shares were down 0.8%.
In a Truth Social post, Trump expressed gratitude to Cook and Apple, claiming that the action demonstrated the company’s confidence in his government.
The majority of Apple’s consumer goods are put together outside of the United States, but many of its components—such as semiconductors from Qorovo, SkyWorks Solutions, and Broadcom—are still manufactured there.
Laptops 1000Apple announced that it began mass-producing processors of its own design at a Taiwan Semiconductor Manufacturing Co. facility in Arizona last month.
During his first term, Trump’s major industrial policy initiatives were bringing TSMC to Arizona and assisting in introducing legislation that eventually became the CHIPS Act to support the U.S. semiconductor industry.
On Monday, Apple announced that it will collaborate with Foxconn, formerly known as Hon Hai Precision Industry, to construct a 250,000-square-foot facility in Houston.
The facility will house servers that power Apple Intelligence, the company’s suite of artificial intelligence features that assist with email drafting and other tasks.
Apple stated that such servers are now manufactured outside of the United States.
Apple announced intentions to expand its Advanced Manufacturing Fund from $5 billion to $10 billion, with a “multibillion-dollar commitment from Apple to produce advanced silicon” at TSMC’s facility in Arizona as part of the expansion.
