Latest news with #USAdvancedManufacturingFund
Euronews
24-02-2025
- Business
- Euronews
Apple to create 20,000 US jobs to shield operations against tariffs
Apple on Monday announced that it would hire 20,000 new workers in the US over the next four years, part of a push to bolster its domestic operations. The tech giant also said it would open a new manufacturing plant in Houston,Texas, by 2026, and that it would create a supplier academy in Michigan. Other states including Nevada, California, and Arizona will see further investment, part of a total funding package of $500bn (€477.50bn) 'We are bullish on the future of American innovation, and we're proud to build on our long-standing US investments,' Apple CEO Tim Cook said in a statement. 'We'll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation,' he added. Apple's statement added that the 'US Advanced Manufacturing Fund', which has previously been used to make glass for iPhones in Kentucky, would be doubled. The funding would increase from $5bn-$10bn, it said. Trade tariffs Monday's announcement comes just days after Cook met US President Donald Trump at the White House, and it mirrors a similar investment pledge made during the President's first term. In 2018, Apple said it would invest $350bn in the US economy over five years. Also preceding Monday's announcement, Trump introduced a 10% additional levy on imported Chinese goods. This is where Apple makes the majority of its products, making the firm particularly vulnerable to trade barriers. The tech giant managed to secure some tariff waivers during Trump's first term, although it's not yet clear whether this will be true this time around. In the President's first sitting, Cook notably argued that a tariff on Apple imports would benefit competitors like South Korea's Samsung. Semiconductor supplies Some chips used by Apple are also made overseas and could be hit by a proposed 25% tariff on semiconductor imports. Apple announced last month that it was ramping up mass production of chips for the iPhone in an Arizona factory, owned by Taiwan Semiconductor Manufacturing Co. (TSMC). The new factory in Houston, meanwhile, will be 250,000 square feet and will create 'thousands of jobs'. Apple added that the site will produce servers that support Apple Intelligence, and a range of AI features. Investment in Michigan will be used to train US manufacturers with the help of engineers and local university staff.
Yahoo
24-02-2025
- Business
- Yahoo
Top analyst weighs in on Apple's massive U.S. spending surprise
Apple shares moved lower in early Monday trading after the tech giant said it would pair with its key supplier to build an AI-focused data center in Texas as part of a broader plan to spend more than $500 billion in the U.S. over the next four years. Apple () Chief Executive Tim Cook, who met last week with President Donald Trump in the White House, said the spending commitment signaled it's "bullish on the future of American innovation" and will include a boost to its US Advanced Manufacturing Fund aimed at developing high-tech production skills. Trump had said last week that Cook had assured him that the new data center would be built in the U.S., and not in Mexcio, although it was unclear if there had been a previous plan to construct the facility south of the border. "We're proud to build on our longstanding U.S. investments with this $500 billion commitment to our country's future,' Cook said in a statement. 'From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we're thrilled to expand our support for American manufacturing," he 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 new data center, expected to be completed by 2026, will house servers that support Apple Intelligence, the group's bespoke AI technology, which now powers its latest generation of iPhones and laptop computers. Taiwan-based Hon Hai Precision, which is commonly known as Foxconn and is Apple's main iPhone assembler, will also help construct the 250,000-square-foot data center, slated for the Houston area. "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," Apple broader $500 billion spending plan includes, however, purchases from Apple suppliers, media production for its Apple TV+ division and other infrastructure tied to its Apple Intelligence rollout. Apple did not break down the amount of new spending included in its $500 billion plan, which works out to around a third of its annual revenue when spread over the four-year period. Webush analyst Dan Ives, who carries an outperform rating and $325 price target on Apple stock, called the decision a "smart strategic move at the right time." "We believe this was a strategic move by Cook & Co. to continue diversifying its manufacturing strategy in both the US and globally while also playing well into Trump's US investment theme given the $500 billion Project Stargate announced earlier this year," Ives said. "Cook continues to prove that he is 10% politician and 90% CEO, and [at] times like this he will be using his strong ties globally to make sure it's smoother waters for Cupertino ahead despite the market agita around Apple's growth initiatives with Trump heading down the tariff-threat path," he added. More AI Stocks: AI startup smashes funding round, signals big changes for health care Analyst revisits Palantir stock forecast following annual report filing Analyst who predicted Palantir rally picks best AI software stocks Late last month, Apple posted fiscal-first-quarter revenue of $124.3 billion, its highest-ever total for the three months ended in December, even as iPhone sales slipped amid the uneven rollout of the group's Apple Intelligence AI features. Apple also posted a record bottom line of $36.3 billion; per-share profit was $2.40, up 10% increase from the year-earlier period. Finance chief Kevan Parekh, meanwhile, said Apple's current-quarter revenue would likely rise in the low- to mid-single-digits percent from a year earlier. That advance likely translates to between $91.7 billion and $95.3 billion, largely in line with Wall Street's estimates. Apple shares were marked 1.04% lower in premarket trading to indicate an opening bell price of $243.06, a move that would nudge the stock into negative territory for the in to access your portfolio
