What just happened? Apple has just announced that the company will make a $500 billion investment in US manufacturing over the next four years. The money will go toward projects including building a new factory in Houston and hiring 20,000 people within the United States.
Apple writes that as part of this package of US investments, it will build a new advanced manufacturing facility in Houston that will produce servers, previously manufactured outside of the US, that support Apple Intelligence. The 250,000-square-foot factory is slated to open in 2026 and create thousands of jobs.
Apple also plans to double its US Advanced Manufacturing fund. Created in 2017 with an initial $1 billion that was later increased to $5 billion, the fund provides investments and grants to US-based companies that contribute to Apple's supply chain, particularly in advanced technology, manufacturing, and component production. The fund is now set to increase to $10 billion.
The fund's expansion includes a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC's Fab 21 facility in Arizona. Apple is already the facility's largest customer.
The investment will also create an academy in Detroit, Michigan, which will train the next generation of US manufacturers. Engineers from top universities such as Michigan State will consult with small- and medium-sized businesses on implementing AI and smart manufacturing techniques. There will also be free in-person and online courses available.
Apple intends to continue growing its research and development investments in the US to support fields like silicon engineering. It plans to hire 20,000 people over the next four years, most of whom will be focused on R&D, silicon engineering, software development, AI, and machine learning. Apple says it has nearly doubled its US-based advanced R&D spending over the past five years, a trend that will continue.
Elsewhere, some of the money will be used to fund Apple TV+ productions in 20 states.
"We are bullish on the future of American innovation, and we're proud to build on our long-standing U.S. investments with this $500 billion commitment to our country's future," said Apple CEO Tim Cook said in a statement. "And we'll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation."
This isn't the first major investment in the US economy Apple has announced. In 2021 the company said it planned to invest $430 billion domestically over the next five years. This came after it promised to make a $350 billion contribution to the US economy across five years in 2018, including the creation of 20,000 jobs.
The announcement comes just a few days after Cook met President Trump at the White House. Trump has announced a 10% tariff increase on goods imported from China, which is where Apple makes most of its products, including the iPhone. There may also be a 25% tariff on semiconductor imports, which would affect Apple.
Trump posted a message on his Truth Social network earlier today, claiming Apple's reason for the announcement was "faith in what we are doing."
Apple announces $500 billion investment in US manufacturing amid Trump tariff concerns
