Apple Commits $500 Billion Investment in the US, Plans New Server Factory in Texas

World

Apple has announced a massive investment plan exceeding $500 billion in the United States over the next four years, which includes hiring 20,000 new employees and constructing a new server factory in Texas. The move, revealed on Monday, follows recent remarks from former US President Donald Trump, who claimed that Apple CEO Tim Cook assured him the company would shift manufacturing operations from Mexico to the US to avoid potential tariffs.

Trump has continued to push for tariffs that could raise the cost of iPhones manufactured in China, prompting Apple’s latest investment commitment. In a company blog post, Cook emphasized Apple’s dedication to American innovation, stating, “We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investments with this $500 billion commitment to our country’s future.”

Apple's investment will encompass purchases from US suppliers, such as sourcing glass for iPhones, as well as funding for Apple TV+ content production within the country. However, the company did not specify how much of this amount was already earmarked for its existing US supply base.

This latest pledge mirrors Apple’s 2018 announcement, made during Trump’s first administration, which also promised 20,000 new jobs as part of a $350 billion US investment plan. While Trump had previously considered imposing tariffs that could have affected iPhones, they were ultimately not targeted during his first term.

Financial analysts suggest that Apple’s announcement serves a political function as well. Gil Luria, an analyst at DA Davidson, estimated that Apple has already been spending more than $150 billion per year in the US on goods and capital expenditures. The latest pledge, Luria noted, appears to be a strategic move to align with the Trump administration’s economic policies and avoid potential trade restrictions.

With this significant investment, Apple reinforces its commitment to expanding its US operations while navigating the evolving political and economic landscape.