Apple has announced a major investment of over $500 billion in the United States over the next four years. As part of this plan, the company will hire 20,000 new employees and build a new server manufacturing facility in Texas.
The announcement comes shortly after former U.S. President Donald Trump stated that Apple CEO Tim Cook assured him the company would move some of its manufacturing from Mexico to the U.S. Trump suggested that Apple made this decision to avoid tariffs.
Commitment to American Innovation
Apple’s latest pledge follows ongoing tariff threats that could raise the cost of iPhones made in China. In a blog post, Tim Cook stated:
“We are optimistic about the future of American innovation, and this $500 billion commitment reflects our dedication to investing in the U.S.”
The investment will cover a wide range of expenses, including purchasing materials from U.S. suppliers—such as glass for iPhones—and producing content for Apple TV+. However, Apple has not disclosed how much of this spending was already planned.
Similar to Previous Investments
This announcement is similar to Apple’s 2018 pledge, during Trump’s first administration, when the company committed to creating 20,000 jobs as part of a $350 billion investment in the U.S. At that time, Trump had considered tariffs that could have impacted iPhone prices, though they were never implemented.
Analyst Gil Luria from DA Davidson believes Apple’s new commitment is also a political gesture. He estimates that Apple already spends over $150 billion per year in the U.S. on its supply chain and investments. Based on this, he suggests Apple could meet its $500 billion goal in just three to four years without significantly increasing its spending.
New Factory in Texas
As part of this expansion, Apple is building a new server manufacturing facility in Houston, Texas, set to open in 2026. This factory will produce servers for Apple Intelligence, the company’s AI-powered system that helps users with tasks like drafting emails. Apple claims the facility will create “thousands of jobs.”
To build the factory, Apple will work with Foxconn, officially known as Hon Hai Precision Industry. The Houston plant will assemble servers that power Apple’s data centers, which are currently manufactured outside the U.S.
With this massive investment, Apple aims to strengthen its presence in the U.S. while staying ahead in the rapidly growing AI industry.