Latest news with #AdvancedManufacturingFund
Yahoo
27-05-2025
- Business
- Yahoo
Apple Is Investing $500 Billion in These States Over the Next 4 Years
Apple is the world's third-largest company, with a market capitalization of around $3 trillion, so it came as no surprise when CEO Tim Cook announced that Apple would spend and invest a significant amount of money in the U.S. over the next four years. It was the amount of that commitment — $500 billion and the creation of 20,000 jobs — that made headlines. Read Next: For You: The February announcement described new projects and expansions for facilities in nine states. These states stand to benefit from Apple's investment: Arizona California Iowa Michigan Nevada North Carolina Oregon Texas Washington Consider This: Apple plans to divide its $500 billion investment among new projects and expansion of existing projects. Apple has selected Houston as the site of a new 250,000-square-foot manufacturing facility that will make energy-efficient servers for Apple Intelligence, the company's personal intelligence system. The servers are also integral to Apple's Private Cloud Compute security architecture, which is powered by AI processing. Although Apple will provide the infrastructure for server production, the servers are manufactured by Foxconn, a Taiwanese electronics company, according to a recent report from The New York Times. The plant will not build Apple's consumer products, which are primarily manufactured overseas. TSMC Fab 21, a fabrication plant in Arizona that already produces silicon for Apple, will see more business as a result of an increase in Apple's U.S. Advanced Manufacturing Fund. The $5 billion fund is doubling in size to $10 billion. Detroit will be home to a new academy Apple plans to build 'to train the next generation of U.S. manufacturers,' according to the statement. In addition to offering training and skills development, the Apple Manufacturing Academy will serve as a resource for companies looking to implement AI and smart manufacturing. Apple operates data centers throughout the U.S. and overseas. Its increased server production will allow the company to continue expanding its data center capacity in Arizona, Iowa, Nevada, North Carolina and Oregon. Seattle is among the sites expected to see some of the 20,000 new jobs Apple plans to create. Axios reported in February that Apple has already doubled the size of its Seattle team over the past three years. Apple is actively preparing students for careers in hardware engineering and silicon chip design through its New Silicon Initiative, which works with eight schools throughout the U.S. As part of its expansion, the program will collaborate with UCLA's Center for Education of Microchip Designers. While the $500 billion spending commitment is Apple's largest, it's not the only major commitment it has made in recent years. In 2018, during President Donald Trump's first term, the company said it would contribute $350 billion to the U.S. economy and create 20,000 jobs in the coming five years. As part of that commitment, Apple created the $5 billion Advanced Manufacturing Fund that the new commitment is expanding. In April 2021, shortly after former President Joe Biden took office, Apple made a similar commitment. In addition to pledging $430 billion in U.S. spending, including for a North Carolina campus the company later put on hold, Apple said it was on target to meet its 2018 hiring goal by 2023 and would add an additional 20,000 jobs by 2026. It's unclear whether Apple has met its 2018 or 2021 hiring and spending goals, or whether the $500 billion commitment consists solely of new U.S. investment. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on Apple Is Investing $500 Billion in These States Over the Next 4 Years
Yahoo
30-04-2025
- Business
- Yahoo
President Donald Trump's first 100 days: Companies that will invest $1B or more in the US
President Donald Trump is marking the first 100 days of his second term, highlighting some of the investments companies will make within the United States. Trump promised in December to cut red tape for any company willing to invest $1 billion or more in the U.S. "Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America, will receive fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals," Trump wrote on his social media platform, Truth Social. "GET READY TO ROCK!!!" These Companies Have Announced Their Intention To Increase Us Manufacturing Amid Trump's First 100 Days The following companies, and others, have made such commitments since Trump returned to office in January: In February, the tech giant announced that it would spend more than $500 billion in the U.S. over the next four years. The investments include a new plant in Texas, an educational manufacturing academy and investments in AI and silicon engineering. "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. "From doubling our Advanced Manufacturing Fund to building advanced technology in Texas, we're thrilled to expand our support for American manufacturing." The semiconductor company, which had a market capitalization of $179 billion in April 2020, now boasts a market cap of more than $2.6 trillion, thanks primarily to the explosive growth of AI technology. On April 14, the company announced that it will spend $500 billion on infrastructure, including a manufacturing facility that will build AI supercomputers in the U.S. for the first time. "The engines of the world's AI infrastructure are being built in the United States for the first time," said Nvidia CEO Jensen Huang. "Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and boosts our resiliency." Read On The Fox Business App Trump Sees 'Manufacturing Boom' In First Full Jobs Report Of Second Term The South Korean-based automaker announced in March a $21 billion investment in the U.S. between 2025 and 2028. It includes: $9 billion to expand U.S. automobile production to 1.2 million units annually $6 billion to enhance parts, logistics and steel business, increase the localization of auto parts and strengthen supply chains $6 billion to expand future industries and strengthen external partnerships and energy infrastructure, including EV charging According to the company, "investment is expected to create more than 100,000 direct and indirect job opportunities by 2028, including 14,000 direct full-time jobs." When announcing the opening of a new 225,000-square-foot manufacturing facility in Durham, North Carolina, the pharmaceutical manufacturer also said it would invest an additional $8 billion by 2028. Treasury Secretary Bessent: 'I'm Not Worried About Inflation' From Tariffs "Expanding our state-of-the-art manufacturing facility in Durham marks a significant milestone in our efforts to strengthen our production and manufacturing capabilities in the U.S.," said Sanat Chattopadhyay, executive vice president and president, Merck Manufacturing Division. "The cutting-edge technologies employed here empower our workforce and underscore our leadership in innovation to support patients everywhere." Other companies committed to investing $1 billion or more include Taiwan Semiconductor Manufacturing Company (TSMC), Johnson & Johnson, Eli Lilly, Novartis, Stellantis and Chobani. Click Here To Read More On Fox Business Original article source: President Donald Trump's first 100 days: Companies that will invest $1B or more in the US Sign in to access your portfolio
Yahoo
04-04-2025
- Business
- Yahoo
Companies Test Apple's Playbook To Dodge Trump's New Tariff Regime
Its "liberation day," the day Donald Trump has set to announce his reciprocal tariff plan on countries that levy duties on our exports and prolific import taxes on goods the Trump administration deems crucial to national security. Businesses are scrambling. Since Softbanks early $100 billion investment announcement on Dec. 16, numerous other companies have followed, totaling $2.8 trillion in business projects and pledges in America. The most recent announcement was from Hyundai - on March 24, the Japanese automaker pledged $21 billion to the United States, including a $5.8 billion steel plant in Louisiana. While these ventures are encouraging, its uncertain whether these companies are truly interested in bringing back Americas manufacturing base or simply eager to stroke the administrations ego and maintain the status quo: cheap foreign labor to maximize profit margins. These investments may be a form of lobbying to defend against Trumps tariff blitz - similar to the millions of dollars tech companies and their CEOs donated to the presidents inauguration fund. Either way, companies will find out what the future holds when Trump announces his reciprocal tariff regime this afternoon. Tariffs give the federal government significant leverage in economic proceedings, and a firms goal is to protect its bottom line by delaying or exempting goods that will be affected by Trumps new global trade order. But are significant investments an effective playbook for transnational organizations? Apple is an interesting case study as it successfully parried several tariffs during Trumps first term. Apple announced a $350 billion "contribution" to the American economy in January 2018. The company promised to create 20,000 jobs, spend $30 billion on new facilities, data centers, and offices, and invest $5 billion in its Advanced Manufacturing Fund. Apple also brought $245 billion in overseas profit back to the U.S. and paid $38 billion in taxes as part of the repatriation. Did Apples contribution translate into new jobs? The short answer is "yes." Apples U.S. workforce grew by about 17,000 from 2018 to 2022. As for its Advanced Manufacturing Fund, Apple awarded $450 million to display glass supplier Corning from 2017 to 2021. Apple also gifted II-VI, an optical technology manufacturer headquartered in Saxonburg, Pennsylvania, $410 million in 2021 to expand its manufacturing capacity. Apple avoided tariffs on its flagship product, the iPhone, for its efforts. In December 2019, Trump halted a 15% levy on China - the initially proposed "List 4B" tariffs would have affected the iPhone, iPad, and MacBook. Apple did not avoid all tariffs from the administration, however. The U.S. Trade Representative (USTR) did not grant relief for all of Apples requested components. Not all companies fulfilled their investment promises. General Motors announced spending $1 billion to create or keep 1,500 manufacturing jobs in 2017. Yet, its U.S. workforce shrank during Trumps first term due to layoffs. In May 2019, the USTR denied GMs exemption request for the Chinese-made Buick Envision SUV for national security purposes. Other companies, like Toyota, made investments and used them in a PR battle against the administration. In January 2017, Toyota announced a five-year plan to invest $10 billion and two years later, increased its investment commitment to $13 billion by 2021. When Trump launched an investigation into the national security threat of Chinese car parts in 2018, Toyota nodded at its investments, stating it "operates 10 manufacturing plants in the U.S." and is "an exemplar of Americas manufacturing might." Trump later declared that certain auto imports posed a national security threat in 2019. The company suggested that the presidents actions sent "a message to Toyota that our investments are not welcomed, and the contributions from each of our employees across America are not valued." The second Trump administration is more bullish on tariffs than it was before. Howard Lutnick, Trumps Secretary of Commerce, called for the restructuring of global trade because we no longer need to aid countries devastated by World War II and the Korean and Vietnam Wars. Lutnick believes the Trump administration will cut the federal deficit through increased tariff revenue. But how does that square with the tariff-fueled spoils system we saw during Trumps first term? And if Trump launches reciprocal tariffs, shouldnt he eventually lower them when our trading partners lower theirs? If this is the case, its unclear how the U.S. would gain enough revenue to reduce the federal deficit and bring back manufacturing jobs. Companies arent waiting to find out. TSMC, Hyundai, Nvidia, and others seem to be imitating Apples campaign to minimize the financial impact of tariffs. These investments may translate into more American jobs, as Apples $350 billion contribution did, but will these companies get the tariff reprieve they crave? Apples playbook may have expired, but we wont know until Trump details his new administrations tariff policy on "liberation day." Daniel Idfresne is a junior at Syracuse University. He's a Young Voices Social Mobility Fellow and interned for 'The Story with Martha MacCallum.' He has written for the New York Post, Newsweek, and The Free Press. Follow him at @danielidfresne
Axios
24-02-2025
- Business
- Axios
Trump manufacturing win: Apple to spend $500 billion in U.S., hire 20,000
Apple on Monday morning announced plans to invest more than $500 billion in the U.S. and hire 20,000 people over the next four years, with expansion and construction planned from coast to coast. The new jobs will focus on research and development, silicon engineering, software development, and AI and machine learning. Apple plans to greatly expand chip and server manufacturing in the U.S., plus skills development for students and workers across the country. Why it matters: Apple's announcement — which the company calls its "largest-ever spend commitment" — is precisely the kind of win President Trump has been looking for with his push to move manufacturing back to the U.S. Apple's new investment — much of it in red states — lets Trump say to other companies: Apple can do it. Why can't (or won't) you? Apple CEO Tim Cook said in the announcement: "We are bullish on the future of American innovation, and we're proud to build on our longstanding U.S. investments with this $500 billion commitment to our country's future." "From doubling our Advanced Manufacturing Fund [from $5 billion to $10 billion], to building advanced technology in Texas, we're thrilled to expand our support for American manufacturing," Cook added. "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." The backstory: Trump met with Cook on Thursday in the Oval Office. Then Trump got so excited that he revealed the plans prematurely, saying on-camera while meeting with governors that Cook is "investing hundreds of billions of dollars. I hope he's announced it — I hope I didn't announce it, but what the hell? All I do is tell the truth — that's what he told me. Now he has to do it, right?" "He is investing hundreds of billions of dollars and others, too," Trump continued. "We will have a lot of chipmakers coming in, a lot of automakers coming in. They stopped two plants in Mexico that were ... starting construction. They just stopped them — they're going to build them here instead, because they don't want to pay the tariffs. Tariffs are amazing." The big picture: Apple says it now supports nearly 3 million jobs across the U.S. through direct employment, work with suppliers and manufacturers, and developer jobs in the iOS app economy. Apple already works with thousands of suppliers across all 50 states, including 24 factories in 12 states. Apple's U.S. Advanced Manufacturing Fund has supported projects in 13 states, helping build local businesses and train workers. Reality check: Apple made a similar announcement four years ago. In 2021, Apple committed $430 billion in U.S. investments and 20,000 new jobs across the country over five years — including a new campus in Research Triangle Park, North Carolina, where development was paused last year. Apple says it has worked with North Carolina Gov. Josh Stein (D) and the North Carolina Department of Commerce to extend the project's timeline. Apple says it continues to grow its teams in the Tar Heel State — both at corporate offices in Raleigh and at a data center in Catawba, where the company has exceeded planned investments. Zoom in: Here's a rundown of Apple's new expansion plans: Texas: New advanced AI server manufacturing factory near Houston. The 250,000-square-foot server manufacturing facility, slated to open in 2026, "will create thousands of jobs," Apple's announcement says. "Previously manufactured outside the U.S., the servers that will soon be assembled in Houston play a key role in powering Apple Intelligence, and are the foundation of Private Cloud Compute, which combines powerful AI processing with the most advanced security architecture ever deployed at scale for AI cloud computing. The servers bring together years of R&D by Apple engineers." Michigan: New Apple Manufacturing Academy in Detroit. "Apple engineers, along with experts from top universities such as Michigan State, will consult with small- and medium-sized businesses on implementing AI and smart manufacturing techniques," the announcement says. "The academy will also offer free in-person and online courses, with a skills development curriculum that teaches workers vital skills like project management and manufacturing process optimization." California: Construction of a state-of-the-art campus is underway in Culver City, an entertainment enclave in L.A. County. In San Diego, a 4,000-member team will continue to grow. Arizona: Apple-designed Apple Silicon will be produced at TSMC's Fab 21 semiconductor plant in Phoenix. Washington state: Apple has doubled the number of team members in Seattle over the past three years to 2,400+, and will keep growing. Operations will expand in Mesa, Arizona ... Reno, Nevada ... Prineville, Oregon ... and Maiden, North Carolina (outside Charlotte). Go deeper: Apple announcement.
The National
24-02-2025
- Business
- The National
Apple announces $500 billion US investment
Apple on Monday announced plans to invest at least $500 billion in the US over the next four years to bolster highly skilled manufacturing, artificial intelligence and the development of students' skills throughout the country. The investment comes amid increased domestic economic uncertainty, with concerns over inflation and worries from business leaders about the possible impact of tariffs promised by the Trump administration. Apple said it plans to hire about 20,000 new people. President Donald Trump thanked both the company and its chief executive Tim Cook after the California-based tech giant's announcement. They have 'faith in what we're doing, without which they wouldn't be investing ten cents. Thank you Tim Cook and Apple!' Nowhere in Apple's press release announcing the investment does the company mention the Trump administration. Mr Cook, however, is quoted about his overall optimism regarding the company's plans in the US. 'We are bullish on the future of American innovation and we're proud to build on our long-standing US investments with this $500 billion commitment to our country's future,' he said. 'From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we're thrilled to expand our support for American manufacturing.' The company also detailed how AI and manufacturing would be integral to its US investment in the years ahead. 'Apple and partners will open a new advanced manufacturing facility in Houston to produce servers that support Apple Intelligence, the personal intelligence system that helps users write, express themselves and get things done,' the company said. Apple also announced plans to open what it described as an Apple Manufacturing Academy in Detroit, as the city continues its attempt to pivot from a post-industrial automotive-based economy. Mr Cook was last week spotted entering the White House, although details about his visit were minimal. The Apple chief has spent years navigating a geopolitical business balancing act, working with the Trump and Biden administrations, while also attempting to navigate Apple's relationships in China, which have been increasingly at odds with the US. While other US companies have floundered in China, Apple has maintained a prominent presence, with more than 50 shops in the country. Mr Cook, along with tech titans Meta founder Mark Zuckerberg, TikTok chief Shou Zi Chew, Google's chief Sundar Pichai, Amazon founder Jeff Bezos and Tesla co-founder Elon Musk, attended President Trump's inauguration. He also joined the ranks of other technology executives in donating to Mr Trump's inauguration fund. The relationship between Mr Cook and Mr Trump has at times been fraught. In 2016 during his first pursuit of the White House, Mr Trump threatened to enact tariffs on Apple products for manufacturing devices overseas, only to later ask Mr Cook to serve on the administration's American workforce policy advisory board three years later. At one point during his first term, Mr Trump bestowed Mr Cook with the nickname 'Tim Apple'. Ryan Young, a senior economist for the Conservative Enterprise Institute, reflected on Apple's announcement, and President Trump's reaction to it. "Letting politicians take credit for things is a proven political strategy. Here Apple is letting Trump take credit for things Apple was already going to do anyway," he said. "Apple did something similar in 2020, when the let Trump take credit for an Apple factory that opened in 2013." As for Apple's latest announcement, the company remained apolitical, despite overtly political posts from Mr Trump concerning the company. 'As a proud American company, we're thrilled to continue to make significant investments in the US," Mr Cook posted on X. As part of the investment, Apple said various facilities and teams in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina and Washington state will be expanding as well. According to estimates, Apple employs about 161,000 workers globally and the company says it helps to support up to 2.4 million jobs through its supplier, developer and retail infrastructure throughout the US.
