Apple reaffirmed its commitment to invest hundreds of billions of dollars in the US on Monday amidst pressure from President Donald Trump and the growing threat of his tariffs.
The tech giant said it plans to spend $500 billion in the US over the next five years, with the intention of hiring 20,000 new workers and producing AI servers.
The plans include the Houston server plant and the Detroit manufacturing academy, which is scheduled to open in 2026. The company also says data centers in California, Arizona, Iowa, Nevada, North Carolina, Oregon and Washington will expand from their investment plans.
Monday’s move is Apple’s latest, flashy announcement about investment in the US, and accelerates existing plans.
The company announced in 2021 that it plans to invest $43 billion domestically over the next five years. In 2018, during Trump’s first term, Apple said it would “contribute” $350 billion to the US economy over five years, including creating 20,000 jobs.
Apple also confirmed that the facility at Arizona-based Taiwan Semiconductor Manufacturing Co., which began developing under the Biden administration, has begun production of chips there.
Trump has tried to praise the latest announcement. And it appears he tilted it just after meeting Apple CEO Tim Cook last week, hinting at the trade obligations that many imports played a role.
“They don’t want to be tariffs,” Trump added last week that Cook had halted plans to build two facilities in Mexico.
In Monday’s Truth Social Post, Trump cited “faith in what we’re doing” as the reason for Apple’s announcement.
In a note to investors, UBS analysts questioned whether they could actually roll out $500 billion in the time frame they laid out by Apple, citing the overwhelming reliance on non-US suppliers and the fact that other major technology companies are historically behind in making large capital expenditures.
“There are many ostensibly headline numbers, but I believe there is no substance at this point based on history,” the analyst wrote.
Apple’s playbook to avoid tariffs appears to be closely tracking strategy during the first Trump administration. That’s when the president allowed him to take office at least three years ago in Texas to make Mac computers. As Apple says it’s intended, Macs made in Texas aren’t one of its mainstream models. All Apple’s major revenue generation products, such as the iPhone, are still manufactured abroad.
Apple and Cook are taking it a step further with Trump’s second term, both donating to Trump’s inauguration fund. Cook attended Trump’s oath ceremony at Capitol Hill.
Apple said the new jobs it plans to hire will mainly be related to research and development, engineering and AI. He also said it plans to expand its investment in existing advanced manufacturing funds.
“We are bullish on the future of American innovation and we are proud to build on years of US investment with this $500 billion commitment to our country’s future,” Cook said in a statement. “And we will continue to work with people and businesses in this country to help us write extraordinary new chapters in the history of American innovation.”
Apple’s shares were largely unchanged in trading earlier Monday.
