By Stephen Nellis (Reuters) – Apple announced on Monday its intention to establish a cutting-edge factory spanning a quarter-million square feet in Texas by 2026, with the primary focus on producing artificial intelligence servers. The tech giant also revealed its commitment to creating approximately 20,000 new research and development positions across the United States. As part of its broader strategy, Apple aims to allocate $500 billion within the U.S. over the next four years, encompassing various expenditures such as sourcing from American suppliers and filming content for its Apple TV+ platform domestically. While specifics regarding the portion of this investment already designated for existing U.S. supply partners – like Corning, renowned for producing iPhone glass in Kentucky – were not disclosed, Apple’s substantial financial pledge underscores its dedication to bolstering the domestic economy.
This landmark decision follows reports of a recent meeting between Apple CEO Tim Cook and President Donald Trump. Notably, Apple faces potential 10% tariffs on numerous products assembled in China, a consequence of recent policy shifts by the current administration. Amid these developments, Apple’s proactive measures to fortify its U.S. presence mirror similar commitments made during the initial Trump administration, wherein the company outlined plans to invest $350 billion over a five-year period. While Apple’s manufacturing operations predominantly occur outside the U.S., critical components – including chips from major suppliers like Broadcom, SkyWorks Solutions, and Qorvo – are domestically produced. Additionally, Apple’s collaboration with Taiwan Semiconductor Manufacturing Co (TSMC) to commence chip production in Arizona underscores the company’s ongoing efforts to localize key manufacturing processes.
Furthermore, Apple’s strategic partnership with Hon Hai Precision Industry’s Foxconn to establish a significant facility in Houston reflects the company’s ambition to domestically manufacture servers essential for powering Apple Intelligence, its suite of AI functions facilitating various tasks such as email drafting. Currently sourced internationally, these servers will soon be produced in the U.S., marking a pivotal shift in Apple’s supply chain strategy. Moreover, Apple’s decision to expand its Advanced Manufacturing Fund from $5 billion to $10 billion underscores its commitment to fostering innovation in silicon production, including a substantial investment in TSMC’s Arizona plant. While specific details of this collaboration remain confidential, Apple’s past utilization of the fund to support partners in enhancing infrastructure bodes well for future advancements in the semiconductor industry.
Lastly, Apple’s initiative to launch a manufacturing academy in Michigan, offering specialized courses in collaboration with local universities, exemplifies its dedication to upskilling engineers and industry professionals in essential areas like project management and manufacturing optimization. This holistic approach not only underscores Apple’s commitment to driving innovation but also highlights its contribution to developing a skilled workforce in key manufacturing regions. With these strategic initiatives, Apple is poised to revolutionize AI and further solidify its position as a trailblazer in technological advancement.
(Reporting by Stephen Nellis in San Francisco; Editing by Shri Nav
