(qlmbusinessnews.com . Tues 25th Feb, 2025) London, UK —
Apple Pledges £396bn Investment in US, Including New Texas Factory
Cupertino, California – Apple has announced plans to plough over $500 billion (£396 billion) into the United States economy over the next four years, a move that includes the construction of a brand new, state-of-the-art manufacturing facility in Texas.
The tech behemoth anticipates this substantial investment will generate 20,000 new jobs across the country. Apple has indicated that the lion's share of these positions will be in research and development, software engineering, and the ever-expanding field of artificial intelligence (AI).
While the company asserts that the sum represents its “largest-ever spend commitment” in the US and will bolster its support for American manufacturing, details remain vague regarding whether this represents an acceleration of pre-existing spending plans or entirely new initiatives. The figure encompasses a broad range of expenditures, from payments to suppliers to the production of content for the Apple TV+ streaming service.
The announcement follows closely on the heels of a meeting between Apple's Chief Executive, Tim Cook, and President Donald Trump, who has consistently championed increased corporate investment within the US.
“We are bullish on the future of American innovation,” Mr. Cook stated.
The new 250,000 square foot factory in Houston, Texas, scheduled to open in 2026, will produce servers crucial to supporting Apple Intelligence, the company's AI platform. These servers were “previously manufactured outside the US,” according to Apple. The project is expected to create “thousands” of jobs.
Apple is also expanding its data centre footprint in North Carolina, Iowa, Oregon, Arizona, and Nevada. Furthermore, the company is doubling its commitment to a fund specifically earmarked for US manufacturing, boosting it from $5 billion to $10 billion. This fund was initially established during Mr. Trump's first term in office.
President Trump himself previewed the investment last week, suggesting it was a direct result of his trade policies, including the imposition of tariffs. He subsequently took to social media to claim credit, stating that the investment was driven by “faith in what we are doing, without which, they wouldn't be investing ten cents.”
Mr. Trump has repeatedly called for companies to bring manufacturing back to the US, threatening increased tariffs to incentivise domestic production. He recently imposed a 10% levy on all imports from China, where Apple maintains a significant manufacturing presence. Similar tariffs have been proposed on goods originating from other countries, including Mexico and Canada.
According to Dan Ives, an analyst at Wedbush Securities, the announcement represents a “strategic move” by Apple to diversify its manufacturing operations, “while also playing well into Trump's US investment theme.”
“Cook continues to prove that he is 10% politician and 90% CEO,” Mr. Ives wrote in a research note.
It is worth noting that Apple announced a $430 billion US investment plan in 2021, which would add 20,000 new jobs across the country over five years.
Mr. Ives suggested that the latest announcements from Apple do not necessarily signal a significant shift in the company's manufacturing arrangements in China, as the areas targeted by the new investment are not central to Apple's operations there.
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