Apple’s plan to invest over $500bn (£396bn) in the US within the next four years is set to kick off with the establishment of a new state-of-the-art manufacturing facility in Texas. The tech behemoth anticipates generating 20,000 new jobs during this period, with a predominant focus on research and development, software, and artificial intelligence (AI) roles. The extent to which this spending represents an acceleration of the company’s existing activities remains unclear. Apple has indicated that the sum encompasses various expenses, ranging from supplier expenditures to Apple TV+ productions. This announcement closely follows a meeting between Apple CEO Tim Cook and President Donald Trump, who has prioritized bolstering corporate investment in the US.
In its announcement, Apple highlighted that this investment is its «largest-ever spend commitment» and will bolster its backing of American manufacturing. Cook expressed optimism about the future of American innovation. The forthcoming 250,000 square foot factory in Houston, Texas, is poised to manufacture servers that were previously produced outside the US to support Apple Intelligence, the company’s AI system. The factory is slated to commence operations in 2026, creating thousands of job opportunities. Additionally, Apple is expanding its data center capacity in various states, including North Carolina, Iowa, Oregon, Arizona, and Nevada. The company is also doubling its contribution to a fund dedicated to US manufacturing, increasing it from $5bn to $10bn, a initiative launched during Trump’s initial term.
Trump had hinted at this announcement earlier, attributing it in part to his trade policies, including tariffs. Subsequently, the president claimed credit for the news on social media, asserting that the investment reflects faith in the administration’s actions. Trump has been vocal about his desire for more companies to manufacture their products in the US, even threatening substantial tariff hikes to incentivize domestic manufacturing. Recently, he imposed a 10% border tax on all imports from China, where Apple has a significant manufacturing presence. Furthermore, he has proposed tariffs on goods produced in several other countries, including Mexico and Canada.
Dan Ives, an analyst at Wedbush Securities, characterized this announcement as a strategic move by Apple to diversify its manufacturing operations while aligning with Trump’s emphasis on US investment. Ives noted that Cook’s leadership style reflects a blend of politician and CEO, with a strong focus on strategic decision-making. Apple had previously announced plans to invest $430bn in the US in 2021, aiming to create 20,000 new jobs nationwide over five years. However, Ives pointed out that the recent initiatives unveiled by Apple do not indicate a substantial shift in the company’s manufacturing strategies for China, as the highlighted areas are not central to its operations there.