Islamabad, Feb 25: Apple announced on Monday its plans to support the construction of a 250,000-square-foot AI server factory in Texas, set to be operational by 2026. This initiative is in partnership with Hon Hai Precision Industry’s Foxconn. The project is part of a broader strategy that will see Apple invest heavily in research and development across the United States, creating 20,000 new jobs in the process.
As part of this investment, Apple revealed it would spend $500 billion in the U.S. over the next four years. This amount will go toward purchasing from domestic suppliers, producing content for Apple TV+, and furthering manufacturing investments. However, Apple did not specify the portion of the $500 billion already allocated to existing suppliers, such as Corning, which produces iPhone glass in Kentucky.
This announcement comes shortly after reports that Apple CEO Tim Cook met with former President Donald Trump last week. With new tariffs potentially being imposed on Apple’s China-assembled products, the company could face a 10% tariff on such goods. Apple previously secured tariff waivers during Trump’s first administration. In a similar move under his leadership, Apple committed to investing $350 billion in the U.S. over five years.
While many of Apple’s consumer products are still assembled overseas, several key components, such as chips from Broadcom, SkyWorks Solutions, and Qorvo, are made in the U.S. In a significant step, Apple also confirmed the mass production of its own chips at Taiwan Semiconductor Manufacturing Co.’s (TSMC) Arizona factory, which began last month. The Arizona facility is part of TSMC’s expansion in the U.S., driven by the CHIPS Act, an industrial policy initiative introduced during Trump’s first term.
Additionally, Apple announced an increase in its Advanced Manufacturing Fund from $5 billion to $10 billion, with part of the fund dedicated to advancing silicon production at TSMC’s Arizona plant. Although specific financial details were not disclosed, the fund has been used previously to assist suppliers in building infrastructure for Apple’s supply chain.
Furthermore, Apple will launch a manufacturing academy in Michigan to provide free courses for small and mid-sized manufacturers, aimed at helping them optimize their operations and better support Apple’s expanding U.S. manufacturing presence.
