Apple commits $500 billion investment in US amid Trump's tariff threats

Apple Inc on Monday announced plans to invest $500 billion in the United States over the next four years, its largest-ever commitment to domestic spending, as the company looks to bolster US manufacturing and research while navigating potential tariff threats that could impact its flagship iPhone.

The investment, which includes expanding advanced manufacturing, artificial intelligence (AI) development, and silicon engineering, comes as President Donald Trump has threatened tariffs that could raise the cost of iPhones assembled in China.

“We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investments with this $500 billion commitment,” Apple CEO Tim Cook said in a statement. “From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing.”

Manufacturing push

As part of the investment, Apple said it will partner with suppliers to open a new manufacturing facility in Houston, Texas, dedicated to producing servers that power Apple Intelligence, the company’s AI-driven personal assistant technology. The 250,000-square-foot plant, set to open in 2026, is expected to create thousands of jobs.

Apple will also double its US Advanced Manufacturing Fund to $10 billion, which supports domestic production of key components such as silicon chips. The company is the largest customer of Taiwan Semiconductor Manufacturing Co’s Fab 21 facility in Arizona, where Apple-designed chips are now being produced.

The fund has backed projects across 13 states, including investments in Broadcom, Texas Instruments, and Skyworks Solutions for semiconductor production and research.

Expanding research and AI development

Apple said it will hire about 20,000 workers in the next four years, focusing on R&D, AI, and silicon engineering. The company will also expand its data centre infrastructure in North Carolina, Iowa, Oregon, Arizona, and Nevada to support AI-driven applications.

In addition, the Cupertino-based company will open an advanced manufacturing academy in Detroit in partnership with Michigan State University.

Apple has nearly doubled its US R&D spending in the past five years, and the company’s latest commitment includes investments in chip design, hardware engineering, and machine learning.

Tariff uncertainty looms

Apple’s announcement comes days after Trump said Cook had assured him that the company would shift some production from Mexico to the US to avoid tariffs. Trump, who has repeatedly criticised companies for offshoring jobs, has suggested that Apple could face new import taxes if it continues to manufacture iPhones in China.

Apple made a similar pledge in 2018 during Trump’s presidency, announcing a $350 billion US investment alongside a promise to create 20,000 jobs. While Trump at the time considered tariffs on iPhones, he ultimately did not impose them.