Just days after its CEO met with President Trump, Apple announced on Monday its intention to invest $500 billion in the United States over the next four years, create 20,000 jobs, and build a new factory in Texas dedicated to producing machinery for its artificial intelligence initiatives.
Tim Cook, Apple’s CEO, stated, “We are optimistic about the future of American innovation, and we’re excited to enhance our long-standing investments in the U.S.”
Following his meeting with Mr. Trump last week, the President mentioned that the company would be moving production back to the U.S.: “They’re going to build here instead because they don’t want to pay the tariffs,” Mr. Trump remarked during a speech to governors.
Currently, most iPhones are produced in China by the Taiwanese firm Foxconn. Earlier this month, the U.S. implemented a 10 percent tariff on all imports from China. Potential levies on goods from Canada, Mexico, and other key partners might be introduced in the next few weeks.
In the past two years, Foxconn has invested millions to expand its operations outside of China, including in Texas and Mexico, where it already assembles A.I. servers. The chairman of the company previously mentioned that this expansion would help protect Foxconn from U.S. tariffs.
Apple announced it will start assembling advanced servers “previously manufactured outside the U.S.” at a new, 250,000-square-foot facility in Houston, set to open next year, which “will create thousands of jobs.” As part of its rollout of A.I. capabilities in devices, Apple also plans to enhance its data center operations in Arizona, Iowa, Nevada, North Carolina, and Oregon.
Apple characterized its announcement on Monday as the “largest-ever spending commitment.” The $500 billion allocation will be directed toward manufacturing facilities, data centers, entertainment projects, and other endeavors. Additionally, over the next four years, the company aims to hire 20,000 employees, primarily focusing on “R&D, silicon engineering, software development, and A.I. and machine learning.”
Four years ago, shortly after President Joseph R. Biden Jr. took office, Apple revealed an “acceleration” of its U.S. investments, pledging to spend $430 billion and create 20,000 jobs over five years. In January 2018, during Mr. Trump’s administration, the company stated that it would contribute $350 billion to the U.S. economy over five years and planned to generate 20,000 jobs during that time.
Apple has not yet provided a response to a request for comment.
