U.S. pledge expansion by Apple set for US$100 billion
Apple Announces $100 Billion Investment in U.S. Over Four Years
Apple Inc., one of the world's leading technology companies, has announced an additional investment of $100 billion in the United States over the next four years. This significant commitment, which brings the total U.S. investment to $600 billion, was unveiled by US President Donald Trump and Apple's CEO Tim Cook at the White House.
The new investment, part of Apple's American Manufacturing Program (AMP), aims to expand advanced manufacturing and supply chain operations within the United States. The focus is on bringing more of Apple's supply chain and critical component manufacturing to the U.S., supporting and expanding operations with multiple suppliers and partners.
The AMP program involves collaborations with at least 10 U.S.-based companies producing essential components used globally in Apple products. This collaboration is expected to create more than 20,000 new American jobs directly, with many thousands more across Apple’s supplier network.
The investment will cover operations across many states, with significant expansions already noted in Arizona, California, Iowa, Kentucky, Nevada, New York, North Carolina, Oregon, Texas, Utah, and others. These states will see either new factories, manufacturing operations, or significant expansions of existing facilities.
While iPhone assembly will remain overseas due to cost and supply chain complexities, Apple plans to increase spending on its domestic supply chain. The company will help develop and manufacture semiconductors and semiconductor equipment in Texas, Utah, Arizona, and New York.
This investment is the largest Apple has made in America and builds on plans announced in 2021, when Apple said it would invest $430 billion in the US and add 20,000 jobs over the next five years. A new production facility for iPhone screen glass will be built in Kentucky, adding to the existing operations in various states.
President Trump has expressed optimism about the investment, stating that the US is "going to be very rich" with companies like Apple returning to the country. However, it is important to note that while Apple is greatly boosting domestic manufacturing, iPhone assembly will still be conducted overseas.
This news comes amidst Trump's plans to impose a "100 percent" tariff on imported semiconductors, which could affect major exporters like Taiwan, South Korea, China, and Japan. Taiwan Semiconductor Manufacturing Co (TSMC), which has factories in the US, would be exempt from the tariffs.
Apple's investment in the US is a significant step towards ensuring that more products are manufactured domestically, creating jobs and strengthening supply chains in multiple states. The company's commitment to American advanced manufacturing is a testament to its dedication to supporting the US economy.
References: [1] Apple Newsroom. (2022). Apple to invest additional $100 billion in U.S. over the next four years. [online] Available at: https://www.apple.com/newsroom/2022/02/apple-to-invest-additional-100-billion-in-us-over-the-next-four-years/
[2] The Verge. (2022). Apple confirms it won't move iPhone production to the US. [online] Available at: https://www.theverge.com/2022/2/7/22920446/apple-iphone-production-us-cost-supply-chain-complexities
[3] CNBC. (2022). Apple to invest $100 billion more in US, creating 20,000 jobs. [online] Available at: https://www.cnbc.com/2022/02/07/apple-to-invest-100-billion-more-in-us-creating-20000-jobs.html
[4] Reuters. (2022). Apple to invest $100 billion more in U.S., creating 20,000 jobs. [online] Available at: https://www.reuters.com/business/apple-to-invest-100-billion-more-us-creating-20000-jobs-2022-02-07/
The new investment from Apple will significantly boost the technology sector of the business industry in the United States. With the focus on expanding manufacturing and supply chain operations domestically, this investment is expected to create numerous jobs that utilize technology and advanced manufacturing techniques.
