On Monday, Apple announced its intention to facilitate the establishment of a 250,000-square-foot factory in Texas by 2026, focused on producing artificial intelligence servers, along with the creation of roughly 20,000 research and development positions nationwide.
The tech giant plans to invest $500 billion in the United States over the next four years, encompassing expenditures like sourcing from American suppliers and filming Apple TV+ content domestically. However, Apple did not specify the proportion of this investment allocated to its existing U.S. supplier base, which includes companies such as Corning—an iPhone glass manufacturer based in Kentucky.
These developments follow a recent meeting between Apple CEO Tim Cook and President Donald Trump amid concerns over potential tariffs affecting Apple products manufactured in China. Earlier, Apple announced under the previous administration its plan to invest $350 billion over five years within the U.S.
While most of Apple's consumer products are assembled overseas, the company still sources various components domestically, including chips from suppliers like Broadcom, SkyWorks Solutions, and Qorvo. Apple noted its recent commencement of chip production at an Arizona facility owned by Taiwan Semiconductor Manufacturing Co, further reinforcing its presence in the U.S.
Apple's collaboration with Hon Hai Precision Industry's Foxconn will lead to the construction of a facility in Houston for assembling servers that support Apple Intelligence services, aimed at enhancing AI features like email drafting. These servers, currently manufactured abroad, will soon be produced domestically.
Moreover, Apple intends to double its Advanced Manufacturing Fund from $5 billion to $10 billion, part of which will fund the production of advanced silicon at TSMC's Arizona plant. The specifics of this arrangement were not disclosed, yet Apple's history indicates using the fund to enhance its product and service offerings.
Additionally, Apple will establish a manufacturing academy in Michigan, where its engineers and local university faculty will provide complimentary courses on topics such as project management and manufacturing optimization to small and medium-sized manufacturing enterprises.