Apple Announces $500 Billion Investment in US Facilities

Apple is making a massive investment in the U.S. The iPhone maker is putting $500 billion toward expanding its facilities in the States. Ideally, the investment will create 20,000 jobs and potentially eliminate many new tariffs for goods brought in from China.

As with many companies that import Chinese products, Apple is especially concerned with the 10% tariffs imposed by the Trump administration. Many of the tech company’s products, including several iPhone models, are shipped from China.

“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” said CEO Tim Cook, per CNN.

The $500 billion investment will be spent over four years, so it will take some time before the new facilities will be ready. However, making such a commitment will likely win favor with President Trump, opening the door for Apple to ask for an exemption from tariff enforcement like it did during Trump’s last term.

Apple Investments in the US

For the most part, Apple does not manufacture its own products; it relies on third-party contractors. Moving forward, the company plans to expand its partners based in the U.S., with many products being produced domestically and free of added tariff fees.

“From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing,” said Cook, according to Yahoo! Finance. “And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”

A Houston-based, 250,000-square-foot server facility is among the commitments the tech company is making. The new facility, which opens next year, will support Apple Intelligence initiatives and employ thousands of people.

To help small and medium-sized businesses understand how to use AI, Apple is opening a training center in Michigan. Several of the company’s data centers located across the U.S. will also be updated and expanded. Some of the money will be put toward improvements to corporate buildings and a production increase of Apple+ TV shows in the U.S.

While Apple has committed to investing half a trillion dollars in American manufacturing, some of the changes were likely already in progress. For the past couple of years, the company has been slowly shifting its supply chain, making moves to reduce its reliance on Chinese goods.

The COVID-19 pandemic created production issues related to Chinese facilities and a delay in iPhone 14 Pro deliveries. As a result, Apple reportedly began looking at alternative countries like India and Vietnam for manufacturing and assembly.