Apple has announced plans to invest $500 billion in expanding its US facilities over the next four years, a move that could help the company mitigate the impact of new tariffs on Chinese imports. The investment is expected to create 20,000 new jobs.
The announcement follows President Donald Trump’s decision to impose a 10% tariff on all imports from China, affecting many Apple products, including iPhones. After a recent meeting with Apple CEO Tim Cook, Trump suggested the investment was a response to these tariffs, stating, “He’s investing hundreds of billions of dollars… And others, too.”
While the investment aligns with Apple’s broader strategy to diversify its supply chain beyond China, it also follows past initiatives to expand US-based production. Apple has previously increased Mac Pro manufacturing in Texas, and its chip supplier TSMC recently opened a semiconductor plant in Arizona with $6.6 billion in federal support.
Though Apple has primarily shifted production to India and Vietnam in recent years, the new US expansion may help the company navigate Trump’s trade policies. While most Apple manufacturing will still take place overseas, the investment could strengthen Apple’s position if it seeks tariff exemptions, as it did during Trump’s previous administration.
“We are bullish on the future of American innovation and proud to build on our long-standing US investments with this $500 billion commitment to our country’s future,” Cook said in a company statement.
Trump responded with an all-caps post on Truth Social, crediting his policies for Apple’s decision, saying, “The reason, faith in what we are doing, without which, they wouldn’t be investing ten cents.”
White House trade adviser Peter Navarro declined to confirm whether Apple would receive a tariff exemption but defended the administration’s trade policies, emphasizing that tariffs are encouraging companies to invest in the US. “You’re just going to see hundreds of billions of dollars coming into this country,” he said.
Investment Breakdown
Apple, which largely relies on contractors for manufacturing, will work with suppliers across all 50 states to enhance US-based production. Key initiatives include:
- New AI Server Facility: Apple will open a 250,000-square-foot server production facility in Houston by 2026 to support its artificial intelligence (AI) efforts, creating thousands of jobs.
- Manufacturing Academy: A new training academy in Detroit will assist small- and medium-sized businesses in implementing AI and smart manufacturing.
- Advanced Manufacturing Fund Expansion: Apple will double its US Advanced Manufacturing Fund to $10 billion to support innovation and skills development.
- Data Center Expansion: Apple will increase data center capacity in North Carolina, Iowa, Oregon, Arizona, and Nevada.
- Corporate and Media Investments: The company will invest in corporate facilities and Apple TV+ production across 20 states.
While some of these projects may have been in progress before the announcement, the investment echoes similar commitments Apple made under previous administrations. In 2021, the company pledged $430 billion over five years under President Biden, and in 2018, it announced a $350 billion investment under President Trump.
Apple has not clarified whether any portions of this latest $500 billion investment were included in prior commitments.
