Apple\u00a0plans $500 billion in US investment, 20,000 research jobs in next four years
Apple plans $500 billion in US investment, 20,000 research jobs in next four years
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Apple plans $500 billion in US investment in next 4 years
Apple said it would spend $500 billion in U.S. investments in the next four years. The money will fund a giant factory in Texas for artificial intelligence servers and 20,000 research and development jobs across the country in that time.
Apple AAPL.O said on Monday it would spend $500 billion in U.S. investments in the next four years that will include a giant factory in Texas for artificial intelligence servers and add about 20,000 research and development jobs across the country in that time.
That $500 billion in expected spending includes everything from purchases from U.S. suppliers to U.S. filming of television shows and movies for its Apple TV+ service. The company declined to say how much of the figure it was already planning to spend with its U.S. supply base, which includes firms such as Corning GLW.N that makes glass for iPhones in Kentucky.
The move comes after media reports that Apple CEO Tim Cook met President Donald Trump last week. Many of Apple's products that are assembled in China could face 10% tariffs imposed by Trump earlier this month, though the iPhone maker had secured some waivers from China tariffs in the first Trump administration.
"This pledge represents a political gesture towards the Trump administration," said Gil Luria, analyst at D.A. Davidson, noting that the $500 billion likely includes all of Apple's spending in the U.S., including general and administrative costs.
"It is unclear whether this announcement represents an acceleration in spend."
Apple made a similar announcement about its U.S. spending plans in 2018, during the first Trump administration, when it said its new and ongoing investments would contribute $350 billion to the U.S. economy over five years.
Shares were down 0.8% in pre-market trading.
Trump, in a Truth Social post, thanked Apple and Cook, saying the move reflected the company's faith in his administration.
Most of Apple's consumer products are assembled outside the U.S., though many of Apple components are still made there, including chips from Broadcom AVGO.O, SkyWorks Solutions SWKS.O and Qorovo QRVO.O.
In case you missed it: Apple to launch new lower-cost iPhone to capture a broader market
Apple said it last month started mass producing chips of its own design at an Arizona factory owned Taiwan Semiconductor Manufacturing Co 2330.TW.
Bringing TSMC to Arizona and helping introduce legislation that later became the CHIPS Act to bolster U.S. semiconductor production were two of Trump's biggest industrial policy moves during his first term.
Apple said on Monday it will work with Foxconn, formally known as Hon Hai Precision Industry 2317.TW, to build a 250,000-square-foot facility in Houston, where it will assemble servers that go into data centers to power Apple Intelligence, its suite of AI features that help draft emails and perform other tasks. Those servers are currently made outside of the U.S., Apple said.
Apple said it plans to increase its Advanced Manufacturing Fund from $5 billion to $10 billion, with part of the expansion being a "multibillion-dollar commitment from Apple to produce advanced silicon" at TSMC's Arizona factory.
Apple did not disclose details of its deal with TSMC, but it has in the past used the fund to help partners build out the infrastructure needed to deliver products or services for Apple.
Apple will also open a manufacturing academy in Michigan where its engineers, along with local university staff, will offer free courses for small and mid-sized manufacturing firms in areas such as project management and manufacturing process optimization.
Reporting by Stephen Nellis in San Francisco, additional reporting by Priyanka G in Bengaluru; Editing by Shri Navaratnam
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