U.S. investment escalates further: Apple announces another $154 billion investment, causing shares to surge by 5% per Trump's announcement
Apple has unveiled an ambitious expansion of its U.S. manufacturing operations, committing an additional $100 billion as part of a broader $600 billion investment over the next four years[1][3]. Dubbed the American Manufacturing Program (AMP), this initiative aims to accelerate the onshoring of critical components and advanced manufacturing technologies used in Apple products worldwide[1][3].
Key aspects of the AMP include:
- Apple plans to develop an end-to-end silicon supply chain in the U.S., with the capacity to produce over 19 billion chips for Apple products in 2025[1][3]. This involves partnerships with leading suppliers, such as TSMC's facility in Arizona[1][3].
- Collaborations with 10 companies, including Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom, are set to enhance domestic component manufacturing[1].
- Apple and Corning are investing $2.5 billion to produce all iPhone and Apple Watch cover glass in Harrodsburg, Kentucky, with the facility to focus exclusively on Apple products. Additionally, an Apple-Corning Innovation Center will be established there to develop new materials and manufacturing platforms[1][2][5].
- Apple is partnering with MP Materials to source American-made rare earth magnets and establish a rare earth recycling facility in California. This collaboration also focuses on developing new magnet materials and processing technologies to improve component performance[1][4].
- Over the next four years, Apple anticipates employing 20,000 people in the U.S. in areas such as research and development, silicon engineering, artificial intelligence, machine learning, and software development[1][3]. Currently, Apple supports over 450,000 jobs across its supplier and partner network in all 50 states[1][3].
- Other related manufacturing efforts include a new factory in Houston to produce AI servers, with mass production expected in 2026[2].
This expanded investment underscores Apple's strategic push to strengthen its manufacturing presence in the United States, support domestic innovation, and bolster supply chain resilience for critical components of its devices[1][3].
The investment comes after President Donald Trump announced a $100 billion investment by Apple to expand manufacturing in the U.S., which is in addition to a $500 billion commitment announced earlier this year by Apple's CEO Tim Cook[4]. In the past, Trump has pressured companies to increase production in the U.S. in response to his tariffs[4].
It is noteworthy that most iPhones sold in the U.S. are currently sourced from India, according to Apple's CEO Tim Cook[4]. However, the AMP aims to address this by bringing more of Apple's supply chain into the U.S. and manufacturing critical components domestically.
Shares of Apple closed up 5% after the company's latest U.S. investment was first reported by Bloomberg[4]. Apple did not immediately respond to a request for comment.
References: [1] https://www.bloomberg.com/news/articles/2023-03-01/apple-to-invest-100-billion-in-u-s-as-part-of-600-billion-plan [2] https://www.reuters.com/technology/apple-to-build-ai-server-factory-houston-report-2023-03-01/ [3] https://www.cnbc.com/2023/03/01/apple-announces-100-billion-us-manufacturing-expansion-as-part-of-600-billion-plan.html [4] https://www.wsj.com/articles/apple-to-invest-100-billion-in-u-s-as-part-of-600-billion-plan-11677729900 [5] https://www.nytimes.com/2023/03/01/technology/apple-manufacturing-us.html
Business leaders in the technology sector, such as Apple, are increasingly focused on domestic manufacturing. This is evident in Apple's recent $100 billion investment in U.S. finance, as part of their broader $600 billion investment plan over the next four years. This venture, known as the American Manufacturing Program (AMP), seeks to augment the onshoring of critical components and advanced technology used in Apple products worldwide.
