Apple has recently reiterated its commitment to invest a substantial amount of money in the United States over the next few years. This announcement comes in the face of pressure from President Donald Trump and the looming threat of tariffs that could affect the company’s business. The tech giant plans to spend $500 billion in the U.S. during the next five years. This investment is expected to create 20,000 new jobs and focus on the production of artificial intelligence (AI) servers.
As part of this investment plan, Apple is set to open a new server factory in Houston, Texas, with plans for it to start operations in 2026. Additionally, a manufacturing academy will be established in Detroit, which aims to further enhance skills related to manufacturing and technology. There will also be expansions at data centers located in various states, including Arizona, California, Iowa, Nevada, North Carolina, Oregon, and Washington.
This announcement is part of a larger trend where Apple has been increasing its investments in the U.S. In 2021, the company revealed it was going to invest $430 billion domestically over five years. Going back even further, in 2018, during Trump’s initial presidency, Apple stated it would contribute $350 billion to the American economy over five years, which included the creation of 20,000 jobs.
In addition to the new commitments, Apple confirmed that a factory operated by Taiwan Semiconductor Manufacturing Company (TSMC) located in Arizona has begun producing chips for the company. This factory started development while Joe Biden was in office, and news of its production had previously been reported.
Trump has been keen to take credit for Apple’s latest investment announcement and hinted at a connection to his discussions with Apple CEO Tim Cook. He suggested that the tariffs he has proposed on various imports might have influenced Apple’s decision-making, claiming that Cook had initially planned to build two facilities in Mexico but changed course.
However, some analysts are skeptical about Apple’s ability to spend $500 billion in the stated timeline. Analysts from UBS pointed out that Apple relies heavily on suppliers outside the U.S. and has historically fallen behind other tech companies in making big capital investments. They noted that while the amount of $500 billion seems impressive, it might not be realistic based on Apple’s past actions.
Apple’s strategy appears to mirror its approach during Trump’s first term when it allowed the president to take credit for a Texas plant that had been assembling Mac computers long before his administration began. Most of Apple’s best-selling products, like the iPhone, are still made outside of the United States.
On a political note, both Apple and Tim Cook have further engaged with Trump’s administration by financially supporting his inauguration fund, and Cook even attended Trump’s inauguration ceremony.
As for the new jobs Apple plans to create, they will mainly focus on research and development, engineering, and AI initiatives. The company also mentioned it would be expanding its existing fund dedicated to advanced manufacturing.
Tim Cook expressed optimism about the future of innovation in America, highlighting Apple’s dedication to supporting the country’s technological growth. He stated, “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.”
In early trading on the stock market, Apple’s shares showed little change following the announcement.