Apple announces additional $100 billion in US investment, following Trump iPhone tariff threat
The move follows Apple's prior $500 billion investment in US spending, which includes working with partners to build an AI server plant in Texas.
Apple says that the $100 billion announcement includes its new American Manufacturing Program (AMP), which the company says will incentivize global companies to build critical components in the US.
The tech giant says its first AMP partners will include Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom.
As part of the investment, Apple is making a $2.5 billion commitment to produce all of the cover glass for its iPhones and Apple Watches at Corning's Harrodsburg, Kentucky, manufacturing facility. The two companies will also work to open an Apple-Corning Innovation Center at the plant to help develop and engineer materials and next-generation manufacturing platforms for future Apple products.
Apple also says it has entered into a multi-year agreement with Coherent to produce lasers for its Face ID feature for the iPhone and iPad.
The company is also touting what is says is a end-to-end American silicon supply chain, which includes sourcing silicon wafers from GlobalWafers in Sherman, Texas, for use in American chip factories, working with Applied Materials to increase production of semiconductor manufacturing technologies, and getting semiconductors from Texas Instruments.
Apple is further teaming up with Samsung to work on new chip making technologies at its plant in Austin, Texas, as well as with GlobalFoundries and Amkor for bring more chip manufacturing and packaging to the US, respectively.
Apple's news comes after the Trump administration began pressuring the tech giant to manufacture its iPhone in the US, going so far as to threaten to impose a 25% tariff on the devices if the company didn't comply.
Apple's announcement also comes as the company prepares for a new 25% tariff on goods destined for the US from India. That's in addition to an existing 25% levy Trump previously said he would apply to the country's products.
Apple builds the majority of the iPhones headed to the US in India, after diversifying its supply chain beyond China following the COVID-19 pandemic. The company still produces iPhones for the rest of the world in China.
Trump has repeatedly criticized Apple for building its iPhones abroad, with the administration saying the company should instead bring its manufacturing facilities to the US.
In May, Trump said he "had a little problem with Tim Cook," while discussing the company's decision to build US iPhones in India.
But industry experts say doing so would be a Herculean task even for Apple, due to a lack of available skilled workers and limited supply chain resources in the country. Even if those factors weren't an issue, it would take years to complete construction of an iPhone plant, at which point Trump would no longer be in office.
During its most recent quarterly earnings report, Apple said it took an $800 million hit due to existing tariffs and anticipated an additional $1.1 billion in related costs in its current quarter.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X/Twitter at @DanielHowley.
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