Apple announced yesterday that it plans to do something for Americans of all text bubble colors: Plug the US economy with $500 billion in the next four years.
The iPhone-maker said:
- It would double its Advanced Manufacturing Fund, increasing it to $10 billion, which will help fund the production of US-made semiconductors—including at Taiwan Semiconductor Manufacturing Company’s new facility in Arizona. Apple confirmed reports that mass production of its chips began there last month.
- While continuing to expand domestic data center capacity, it will start assembling servers for its AI product Apple Intelligence in Houston that were previously made abroad.
- A new Apple academy in Detroit will help businesses implement AI and train manufacturing workers.
The company plans to hire 20,000 US-based employees for roles related to research, semiconductor engineering, and AI development.
Is this Trump cooking?
The half-trillion investment laundry list dropped days after Apple’s CEO Tim Cook met with President Trump, who credited it to “faith in what we are doing.”
Some analysts doubt how much Apple’s spending plans actually changed in response to recent White House policy. But the timing of the tech giant’s announcement touting its contributions to America’s GDP at least appears to be strategic.
- Apple’s margins are expected to suffer from the 10% duty that Trump recently imposed on imports from China, where it still sources much of its gadgets.
- It would take a further hit from a 25% semiconductor tariff that Trump floated this month.
During Trump’s first term, Cook reportedly convinced him to spare Apple products from tariffs on Chinese imports by privately arguing that it would’ve benefited its South Korean competitor Samsung. At the time, Cook promised to invest $350 billion in the US and later publicly allowed Trump to take credit for a Texas MacBook factory that had already been making products since 2013.
And today…Apple’s shareholders will vote on whether to axe its DEI programs, a proposal that the company’s board opposes, claiming it would interfere with decision-making around hiring and operations.—SK