Apple plans $669 billion in US investment, 20,000 research jobs in next four years
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Apple will add about 20,000 research and development jobs across the US in four years.
PHOTO: REUTERS
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Apple said on Feb 24 it would spend US$500 billion (S$669 billion) in US investments in the next four years that will include a giant factory in Texas for artificial intelligence servers and add about 20,000 research and development jobs across the country in that time.
That US$500 billion in expected spending includes everything from purchases from US suppliers to US filming of television shows and movies for its Apple TV+ service.
The company declined to say how much of the figure it was already planning to spend with its US supply base, which includes firms such as Corning that makes glass for iPhones in Kentucky.
The move comes after media reports that Apple CEO Tim Cook met President Donald Trump
Many of Apple’s products that are assembled in China could face 10 per cent tariffs imposed by Mr Trump
“This pledge represents a political gesture towards the Trump administration,” said Mr Gil Luria, analyst at D.A. Davidson, noting that the US$500 billion likely includes all of Apple’s spending in the US, including general and administrative costs.
“It is unclear whether this announcement represents an acceleration in spend.”
Apple made a similar announcement about its US spending plans in 2018, during the first Trump administration, when it said its new and ongoing investments would contribute US$350 billion to the US economy over five years.
Shares were down 0.8 per cent in pre-market trading.
Mr Trump, in a Truth Social post, thanked Apple and Mr Cook, saying the move reflected the company’s faith in his administration.
Most of Apple’s consumer products are assembled outside the US, though many of Apple components are still made there, including chips from Broadcom, SkyWorks Solutions and Qorovo.
Apple said it started mass-producing chips of its own design in January at an Arizona factory owned by Taiwan Semiconductor Manufacturing Company (TSMC).
Bringing TSMC to Arizona and helping introduce legislation that later became the Chips Act to bolster US semiconductor production were two of Mr Trump’s biggest industrial policy moves during his first term.
Apple said on Feb 24 it will work with Foxconn, formerly known as Hon Hai Precision Industry, to build a 23225 sqm facility in Houston, where it will assemble servers that go into data centres to power Apple Intelligence, its suite of AI features that help draft e-mails and perform other tasks.
Those servers are currently made outside the US, Apple said.
Apple said it plans to increase its Advanced Manufacturing Fund from US$5 billion to US$10 billion, with part of the expansion being a “multibillion-dollar commitment from Apple to produce advanced silicon” at TSMC’s Arizona factory.
Apple did not disclose details of its deal with TSMC, but it has in the past used the fund to help partners build out the infrastructure needed to deliver products or services for Apple.
Apple will also open a manufacturing academy in Michigan where its engineers, along with local university staff, will offer free courses for small and mid-sized manufacturing firms in areas such as project management and manufacturing process optimization. REUTERS
