Apple has announced that it will invest $500 billion in the United States over the next four years. The investment will include a massive AI server factory in Texas and the creation of approximately 20,000 research and development jobs across the country.
This $500 billion in expected spending will encompass everything from US supplier purchases to the filming of television shows and movies for Apple TV+, news agency Reuters reported.
The company did not specify how much of the figure was already planned for its US supply base, which includes partners like Corning, which manufactures glass for iPhones in Kentucky.
Apple CEO Tim Cook confirmed that this plan is part of the company’s commitment to support American innovation, advanced manufacturing, and high tech job creation.
“As a proud American company, we’re thrilled to continue to make significant investments in the US. Today, we’re announcing a $500 billion commitment to support American innovation, advanced manufacturing, and high tech job creation.” Tim Cook posted on X.
The announcement follows media reports that Apple CEO Tim Cook met with President Donald Trump last week.
Trump, who has pushed US companies to shift manufacturing home, claimed that his administration was to thank for the investment.
“The reason, faith in what we are doing, without which, they wouldn’t be investing ten cents. Thank you Tim Cook and Apple!!!” Trump wrote in capital letters on his Truth Social platform.
Many of Apple’s products, which are assembled in China, may face 10% tariffs imposed earlier this month, though Apple secured some tariff exemptions during Trump’s first term.
“This pledge represents a political gesture towards the Trump administration,” said Gil Luria told Reuters, analyst at D.A. Davidson, adding that the $500 billion is likely to cover all of Apple’s US expenditures, including general and administrative costs. It remains unclear whether this marks an acceleration in Apple’s spending plans.
Apple made a similar announcement in 2018, pledging $350 billion in US investments over five years during Trump’s first term.
Following the latest news, Apple’s shares were down 0.8% in pre-market trading, according to Reuters. Although most Apple products are assembled outside the US many of its components, such as chips from Broadcom SkyWorks Solutions, and Qorvo are made domestically.
Apple also revealed it has begun mass production of its own-designed chips at an Arizona facility owned by Taiwan Semiconductor Manufacturing Co. The move is part of Apple’s continued investment in US manufacturing, which aligns with the CHIPS Act, a key industrial policy introduced during Trump’s first term.
AI server facility in Texas
In addition to the AI server facility in Texas, Apple plans to collaborate with Foxconn to build a 250,000-square-foot plant in Houston. This facility will assemble servers for Apple Intelligence, its suite of AI-powered features. These servers are currently manufactured outside the US, according to Reuters.
The company also announced plans to expand its Advanced Manufacturing Fund from $5 billion to $10 billion, with a multibillion-dollar commitment to producing advanced silicon at TSMC’s Arizona plant.
Apple will also establish a manufacturing academy in Michigan to offer free courses in project management and process optimization for small and mid-sized manufacturing firms.
Apple’s Quarter Performance
In January, Apple CEO Tim Cook celebrated the company’s “best quarter ever,” with quarterly profits reaching $36.3 billion. The Americas continued to be Apple’s largest market, generating $56.2 billion in revenue, while Europe showed strong growth with $33.9 billion in earnings, according to AFP.
Apple aims to attract customers with its latest iPhone models powered by new AI capabilities. This move aligns with other tech giants, such as Google, Microsoft, and Amazon, which are increasing investments in generative AI, seeing it as the next frontier of computing.
Aligned with tariff strategy to boost US Economy
Apple’s announcement follows comments from President Donald Trump, who praised Apple’s plans to invest “hundreds of billions of dollars” in the US as evidence of his tariff strategy’s success in boosting the American economy. Trump’s administration has used tariffs as a trade weapon, imposing 10% levies on Chinese goods and threatening tariffs on products like semiconductors, cars, and pharmaceuticals. While the administration argues these tariffs encourage US manufacturing, critics warn they could raise consumer prices.
