Apple details $100 billion U.S. spending expansion, including $2.5 billion for an iPhone glass factory
The company said its investment would incentivize overseas companies to buy more U.S.-made parts. The commitment is on top of a $500 billion announcement that Apple made in February.
Apple said that it had created the so-called American Manufacturing Program that includes Corning, Coherent, GlobalWafers, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor and Broadcom.
For one aspect of the program, Apple said it would spend $2.5 billion to fund a major expansion with Corning, which makes glass for iPhones in Kentucky. Apple said that all glass for iPhones and Apple Watches will be manufactured in the U.S.
Apple also said it had a multiyear supply agreement with Coherent to produce lasers for the iPhone's facial recognition system.
CEO Tim Cook will join President Donald Trump in the Oval Office on Wednesday to tout the latest plans to spend and invest in the U.S. Apple's Wednesday announcement doesn't include significant increases in domestic production for its devices.
Apple has made similar announcements in the past. In 2018, under pressure during the first Trump administration, Apple committed to spend $350 billion in the U.S. over five years, or about $70 billion per year. In 2021, Apple announced plans to spend $430 billion over five years, or $86 billion per year in the U.S. Wednesday's announcement has the company at $600 billion over four years, or $125 billion per year.
The company also faces increased tariffs that could hurt its profits. It's currently paying for tariffs placed on Chinese imports earlier this year, and faces increased import taxes on semiconductors when the Trump Administration finishes a so-called Section 232 investigation.
Apple said in May that the majority of phones it's selling in the U.S. are assembled in India to avoid Chinese tariffs, and although tariffs on India are going up to 25%, White House sources told CNBC that the iPhone maker will be "largely unaffected" by the India tariffs. Apple said that tariffs could cost the company $1.1 billion in the current quarter.
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