In response to President Trump’s tariff threats, Apple has unveiled a massive plan to invest over $500 billion in the United States. This ambitious move includes hiring 20,000 new employees and establishing a new server factory in Texas.
The announcement comes after CEO Tim Cook’s meeting with President Trump last week and serves as an effort to mitigate the potential impact of trade tariffs. With a 10% tariff already imposed on Chinese imports and a threatened 25% tariff for chips, Apple is taking proactive steps to protect its business.
This investment plan echoes a similar one made by Apple during the first Trump administration in early 2018. At that time, the company promised 20,000 jobs and a $350 billion spend in the US, along with the construction of a new campus in Austin. The company was successful in obtaining exemptions for some of its products from tariffs and this latest investment may serve as further protection.
Apple has revealed some concrete details about their increased US spending. One major aspect is the establishment of a new factory in Houston which will produce servers for their AI features under “Apple Intelligence.” This facility alone is expected to create thousands of jobs.
In addition, Apple is doubling its Advanced Manufacturing Fund from $5 billion to $10 billion. Launched in 2017, this fund aims to support innovation and high-skilled manufacturing jobs across America. As part of this initiative, Apple will be placing a multi-billion dollar order for chips from TSMC’s Arizona factory.
Overall, Apple plans on hiring 20,000 more employees throughout the term of Trump’s administration with most focused on R&D and engineering roles related to AI and machine learning technology. They also intend on opening an Academy in Detroit where they will offer consultations and free classes for local businesses looking to implement AI and smart manufacturing techniques.
Apple’s CEO, Tim Cook, expressed his enthusiasm for this investment plan stating, “We are bullish on the future of American innovation and we’re proud to expand our support for American manufacturing with this $500 billion commitment. From doubling our Advanced Manufacturing Fund to building advanced technology in Texas, we’re dedicated to writing a new chapter in the history of American innovation.”
This latest announcement adds to Apple’s previous promise in 2021 to spend $430 billion over five years, which included plans for a new campus in North Carolina (though development has since been paused). With this bold move, Apple is showcasing their confidence in the future of American innovation and solidifying their commitment to supporting it.