Apple announced on Monday that it will be investing $500 billion to expand its US facilities over the next four years, a move that may help it avoid paying new tariffs on goods imported from China.
Apple stated that the investment will result in the creation of 20,000 new jobs.
Apple is importing many of its iPhones from a country, and the US President indicated on Friday that the company is planning to make an investment in this country after meeting with Apple’s CEO, Tim Cook, on Thursday. He credited his tariffs with prompting this investment.
I hope he’s made an official announcement about it, but he’s planning to invest hundreds of billions of dollars, he told me. And that’s not all – other companies, including chip makers and automakers, are also set to invest a lot.
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New legislation passed during the Biden administration aimed to boost investment in US semiconductor manufacturing. Nonetheless, Apple has primarily increased production in locations such as India and Vietnam.
during Trump’s prior term.
We are optimistic about the progress of innovation in America, and we’re pleased to continue our strong investment in our nation’s future with a $500 billion pledge.
On Monday morning, he claimed responsibility for the decision.
The reason faith in what we are doing is necessary, or else they wouldn’t be investing even a single cent.
White House trade counselor, Peter Navarro, refused to rule out granting a tariff exemption for Apple’s iPhone and other electronic imports from China, when asked by TPLinkfi.com on Monday.
“We always have to go by what the President decides,” he said in an appearance on TPLinkfi.com News Central. He declined to express his personal opinion on whether he would back such an exemption.
“He lets me handle my work the way I see fit,” he said.
Navarro justified the administration’s imposition of new tariffs and threats of additional tariffs, and he echoed President Trump’s claim that the tariffs were the reason Apple agreed to make the investment in the US.
They’re going to see hundreds of billions of dollars pouring in from various industries and sectors into this country, rather than seeing it go to China, where Apple’s CEO Tim Cook has historically had a strong inclination to invest.
Apple’s US investment is not a direct way to avoid China tariffs, according to Angelo Zino, a CFRA research equity analyst. However, “it will at least position the company favorably with the new administration if exemptions to tariffs become an option,” Zino mentioned in a written comment following the Monday announcement.
The investment
Apple stated that it doesn’t typically manufacture its own products, instead relying on outside contractors. Going forward, the company plans to partner with numerous manufacturing facilities located across all 50 US states to produce more of its products domestically.
Apple is expanding its operations with a 250,000-square-foot server production facility in Houston, which will support its artificial intelligence products under the Apple Intelligence brand. The facility, set to open in 2026, is expected to generate thousands of new jobs. The servers, which were previously made overseas, are a crucial component of Apple’s AI initiatives.
Apple engineers have combined their years of research and development into the servers.
Apple is investing in a new academy in Detroit that will teach small- and medium-sized businesses how to use artificial intelligence and smart manufacturing techniques. The company is also increasing its investment in its US Advanced Manufacturing Fund to $10 billion to support advanced manufacturing and skills development across the nation.
These investments will also increase data center capacity in North Carolina, Iowa, Oregon, Arizona, and Nevada, and Apple plans to invest in corporate facilities and the production of Apple TV+ shows in 20 states.
Some of these initiatives were probably already in motion before Monday. The announcement also reflects similar commitments Apple made in the past two administrations.
The plan involves investing $350 billion in the United States over the course of five years, which is expected to generate 20,000 new jobs by increasing US data center capacity.
Apple did not provide an immediate response to a query about whether the investment dollars and new jobs announced on Monday were also part of previous announcements.
The following story has been revised with new information and background details added.
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