Apple Announces $500B US Investment Plan, Adding 20K Jobs

[MacRumors]

Apple has announced plans to invest $500 billion in the United States over the next four years, including a significant expansion of its domestic manufacturing and research capabilities, according to Bloomberg. The commitment comes following a recent meeting between CEO Tim Cook and President Donald Trump.

The tech giant's plans include the construction of a new server manufacturing facility in Houston, where Apple and Foxconn will produce servers for Apple's Private Cloud Compute system. The 250,000-square-foot facility is scheduled to open next year.

Apple will also establish a supplier academy in Michigan, "to train the next generation of US manufacturers," and will expand its data center presence across multiple states, including Arizona, Oregon, Iowa, Nevada, and North Carolina. The company confirmed that chip production has already begun at TSMC's Arizona facility, which is currently manufacturing components for some Apple Watch and iPad models.

The 20,000 new jobs Apple plans to create will focus primarily on research and development, silicon engineering, and artificial intelligence. This matches the company's previous hiring wave, which added 20,000 R&D positions over the last five years.

In Detroit, Apple plans to double down on manufacturing education by opening a dedicated academy to support smaller companies. The tech giant is also doubling its US manufacturing fund to $10 billion.

"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 to our country’s future," Cook said in a statement. "We'll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation."

The announcement is likely to have been strategically timed, given that Trump has threatened to impose an additional 10% tax on Chinese imports. Cook previously succeeded in protecting the iPhone from tariffs during Trump's first term by arguing that such measures would end up benefiting competitors like Samsung.

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Article Link: Apple Announces $500B US Investment Plan, Adding 20K Jobs

 

[grantishere]

Made in America 🇺🇸

 

[katewes]

Tim Cook acts like a politician. For example, whenever Cook was asked why he didn't let Apple do more manufacturing in the U.S. rather than in China, he gave this excuse that manufacturing in China wasn't just for lower costs, but because of China's greater manufacturing infrastructure and expertise. But no one challenged Cook to explain WHY China has better manufacturing infrastructure and expertise. It's because decades ago, money-hungry companies like Apple shifted their manufacturing to China, thus creating the environment for China to grow that beneficial environment and workforce. In an alternate reality, if companies like Apple had kept their manufacturing in the U.S., then that same awesome manufacturing infrastructure and expertise would have been in the U.S. today, not in China. I hate it when people in the Media, who interview Tim Cook, never press him on that point.

 

[DrJR]

YES! Bring it all home! ♥️🇺🇸

 

[DaniTheFox]

I find it disheartening when individuals purchase products manufactured in China solely because they are less expensive than locally manufactured products.

Isn’t this not the reason this all began?

 

[rgwebb]

Tim Cook acts like a politician. For example, whenever Cook was asked why he didn't let Apple do more manufacturing in the U.S. rather than in China, he gave this excuse that manufacturing in China wasn't just for lower costs, but because of China's greater manufacturing infrastructure and expertise. But no one challenged Cook to explain WHY China has better manufacturing infrastructure and expertise. It's because decades ago, money-hungry companies like Apple shifted their manufacturing to China, thus creating the environment for China to grow that beneficial environment and workforce. In an alternate reality, if companies like Apple had kept their manufacturing in the U.S., then that same awesome manufacturing infrastructure and expertise would have been in the U.S. today, not in China. I hate it when people in the Media, who interview Tim Cook, never press him on that point.

I don’t think that is the whole truth. China put a huge state investment into becoming an electronics manufacturing leader in the 90s and 00s.

The United States problem is we think private corporations will just do whatever is good for the United States instead of their shareholders. US corporations outsourced because it increased shareholder value. Dodge v. Ford Motor Co. established shareholder supremacy as US legal precedent in the 1920s. If the US wants companies to make decisions other than increase shareholder value, they can either tariff the businesses into reconsidering their import decisions or become a majority shareholder in strategically important businesses. I think the latter is not considered enough in this country but it is possibly the future of Intel if they want a US owned and operated full stack semiconductor designer and manufacturer.

 

[Johnny London]

Why not? Is this decision influenced by the Trump administration’s efforts to make the US more attractive for businesses overall? I assume it is. Non-US citizen here

 

[rgwebb]

I find it disheartening when individuals purchase products manufactured in China solely because they are less expensive than locally manufactured products.

Isn’t this not the reason this all began?

The best way to get the consumers to buy domestically produced goods is the combination of tariffs to make the foreign goods more expensive and direct state cash infusion to float the decades worth of catching up domestic manufacturing has to make.

If the state just does tariffs without the state floating the domestic catchup then all that has been done is permanently raising the prices of some goods and services until the tariffs are cancelled.

500 billion dollars is a big number from one of the biggest companies in America but I think it is a drop in the bucket for the amount of domestic investment we need and, by its very nature, this Apple investment is entirely self-serving.

 

[Admiral]

Doesn't $500 billion investment creating 20,000 jobs work out to an investment of $25 million per job? Am I doing the math wrong? A billion is a thousand millions.

 

[rgwebb]

Doesn't $500 billion investment creating 20,000 jobs work out to an investment of $25 million per job? Am I doing the math wrong? A billion is a thousand millions.

Like a real-time lesson in in-direct costs. Ha! It is going to cost money to pay for the training (the educators, school houses, lab equipment, etc).

 

[hans1972]

So no iPhone, iPad and MacBook assembly in the US?

Great. Buying an iPhone or iPad assembled in the US would be my last choice if I could choose between China, India and USA.

 

[hans1972]

I find it disheartening when individuals purchase products manufactured in China solely because they are less expensive than locally manufactured products.

Isn’t this not the reason this all began?

Why would I as a Norwegian care if this is assembled in the US?
I'm so glad that this doesn't effect iPhones, iPads and MacBooks who will still be assembled outside the US.

Is working at a factory the American Dream? It seems so....

 

[brofkand]

Tim Cook acts like a politician. For example, whenever Cook was asked why he didn't let Apple do more manufacturing in the U.S. rather than in China, he gave this excuse that manufacturing in China wasn't just for lower costs, but because of China's greater manufacturing infrastructure and expertise. But no one challenged Cook to explain WHY China has better manufacturing infrastructure and expertise. It's because decades ago, money-hungry companies like Apple shifted their manufacturing to China, thus creating the environment for China to grow that beneficial environment and workforce. In an alternate reality, if companies like Apple had kept their manufacturing in the U.S., then that same awesome manufacturing infrastructure and expertise would have been in the U.S. today, not in China. I hate it when people in the Media, who interview Tim Cook, never press him on that point.

Companies left because our government made it more advantageous to offshore.

 

[DaniTheFox]

Do not forget that when you aspire to complete independence, the tools used in your factory must also be produced locally. Similarly, the research and development of these tools should be conducted by individuals who receive training based on knowledge acquired in your country. This principle should extend to various aspects of your operations.

 

[cardfan]

Keep in mind it's a hamster on a wheel running apple intelligence right now.

 

[H2SO4]

Tim Cook acts like a politician. For example, whenever Cook was asked why he didn't let Apple do more manufacturing in the U.S. rather than in China, he gave this excuse that manufacturing in China wasn't just for lower costs, but because of China's greater manufacturing infrastructure and expertise. But no one challenged Cook to explain WHY China has better manufacturing infrastructure and expertise. It's because decades ago, money-hungry companies like Apple shifted their manufacturing to China, thus creating the environment for China to grow that beneficial environment and workforce. In an alternate reality, if companies like Apple had kept their manufacturing in the U.S., then that same awesome manufacturing infrastructure and expertise would have been in the U.S. today, not in China. I hate it when people in the Media, who interview Tim Cook, never press him on that point.

To the people that downvote, what part of the OPs statement is untrue?

 

[hans1972]

Doesn't $500 billion investment creating 20,000 jobs work out to an investment of $25 million per job? Am I doing the math wrong? A billion is a thousand millions.

Your math is correct.

Cook knows Trump's attention span is short. Trump has now negotiated a deal, he is satisfied. This doesn't affect the production of Apple's end-user products at all in the short term, they'll partner with other companies so they don't own any factory themselves and just hope Trump doesn't pay attention the next four years.

That's what Cook did last time when he moved some of the Mac Pro (2013) production to Texas.

Tim Cook is a master diplomat.

 

[Blackstick]

Yep and when they find no local talent with the skillset… 20,000 automation engineers from India flown in on HB2s and cycled every 2 years.

It’s a token gesture to keep Trump from tariffing Apple, quite obviously. They correctly know Trump doesn’t have an attention span, and conveniently none of this comes due until 2030, when there will be other politicians with differing priorities who won’t be paying any attention to a reduced commitment or “reprioritization.”

It’s hard enough to find software engineers in the US. Not gonna find them in Houston — and data centers employ perhaps 50 people a piece, on the high end.

 

[Expos of 1969]

These are "plans". Plans can easily change. Trump's very short attention span will soon be on something else and he will be out of power or deceased before Apple actually spends many resources on these "promises"

 

[katewes]

To the people that downvote, what part of the OPs statement is untrue?

In today's sick world, people don't just down-vote because something is FALSE-INFORMATION.

They downvote when something goes against their ideology, i.e. MIS-INFORMATION. Misinformation is no longer false information. Misinformation is something that goes against one's agenda.

Very few people nowadays think om terms of right versus wrong. They think in terms of my team vs. the other team.

The instant people feel any negative twinge in their psyche, they downvote, not realizing that every opportunity we have of realising we're wrong, will always be accompanied by a negative emotion.

 

[Blackstick]

These are "plans". Plans can easily change. Trump's very short attention span will soon be on something else and he will be out of power or deceased before Apple actually spends many resources on these "promises"

Bingo! When you’re dealing with a president who can’t even sort out “which” vs “witch” in a tweet, you can say whatever you like, by next week he’s forgotten it.

 

[Velli]

Made in America 🇺🇸

It is noteworthy that none of this relates to the actual hardware you are buying. In other words, doesn’t stop you from paying for your own tariffs, despite Trump’s claims. If you think a 25% tariff sounds bad, bringing the manufacturing of the iPhone to the US would make it much more than 25% more expensive. Otherwise they would have done it already.

 

[katewes]

Yep and when they find no local talent with the skillset… 20,000 automation engineers from India flown in on HB2s and cycled every 2 years.

It’s a token gesture to keep Trump from tariffing Apple, quite obviously. They correctly know Trump doesn’t have an attention span, and conveniently none of this comes due until 2030, when there will be other politicians with differing priorities who won’t be paying any attention to a reduced commitment or “reprioritization.”

It’s hard enough to find software engineers in the US. Not gonna find them in Houston — and data centers employ perhaps 50 people a piece, on the high end.

Think solutions, not criticism.

When there's not enough software engineers in the U.S. -- given that need -- within 1 to 2 decades that need for software engineers could trigger what happened in China a few decades ago, where the need resulted in the growth of an industry to meet that need.

In the 1990's in China, there was not the manufacturing infrastructure and expertise that there is now. I know. You probably weren't old enough to know when China was a dirt poor country with no expertise.

Why can't people see that the negativity in individuals is what causes, on a big scale, the negativity in society, that cannot see solutions to problems, just criticisms.

 

[Blackstick]

Think solutions, not criticism.

When there's not enough software engineers in the U.S. -- given that need -- within 1 to 2 decades that need for software engineers could trigger what happened in China a few decades ago, where the need resulted in the growth of an industry to meet that need.

In the 1990's in China, there was not the manufacturing infrastructure and expertise that there is now. I know. You probably weren't old enough to know when China was a dirt poor country with no expertise.

Why can't people see that the negativity in individuals is what causes, on a big scale, the negativity in society, that cannot see solutions to problems, just criticisms.

You think we’re going to see more software engineers as republicans dismantle what’s left of public education and prioritize funds for new computers to new police cruisers?

We’re going to see more people needing government assistance because their Walmart gig won’t stock their fridge.

You seem to think we’re on a path we’re not on. China invested in their students. The US invests in pharma, oil compnanies, defense contracts and billionaire interests.

 

[smaffei]

Well, at least we know now what the cost is to make a Dept of Justice investigation go away.