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.
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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.
How will this affect product quality, made in America has not the best reputation here in Europe. I own a car and some other products build in the states and I can see why.
The reality is most Americans don’t have any experience making any products.Lets say "China" (insert any non-US country) sells an item for $100 in the US. Okay, now we have tariffs and the item is now $120.
Even if the same "Made in the USA" item could sell in the US for $100 with profit, I guarantee you that the US made product will sell for $119.99.
I'm not saying that I am pro/anti tariffs. That's just capitalism.
The reality is most Americans don’t have any experience making any products.
I manufacture scientific gadgets in China. The kind of stocking stuffers you’d buy for the nerd in your life at Christmas or for their birthday. Stuff like gauss meters and soldering kits and such.
Anyways. None of the manufacturing for these sub components even exists in the US. I’d love to make this stuff in Wisconsin, but there ain’t a factory making transistors or capacitors or PCBs over there. China has it all. There’s 2 blocks next to each other in Hong Kong where I can get my packaging made, documentation, there’s English speaking electronics engineer and the actual factory next door.
None of that exists in the US. And 3 years of a prez administration isn’t going to change it. And yes the administration is only 3 years long. The entire 4th year is the campaign for the next one.
US Corporations began shifting manufacturing shortly after Nixon visited China. Apple primarily manufactured out of Sacramento and Cork, Ireland well into the late 1990s. By then the entire IT world was manufacturing out of China.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.
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Apple announces $500bn in US investments over next four years
Spending ranges from new AI server factory in Texas to film and TV content and may add 20,000 jobswww.theguardian.com
Exactly. Remember when the Mac Pro was being made here and then suddenly wasn't?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"
No, it would sell for $130+, because you would now have an argument for charging more. Even though “made in US” is unlikely to improve quality. Probably the opposite.Lets say "China" (insert any non-US country) sells an item for $100 in the US. Okay, now we have tariffs and the item is now $120.
Even if the same "Made in the USA" item could sell in the US for $100 with profit, I guarantee you that the US made product will sell for $119.99.
I'm not saying that I am pro/anti tariffs. That's just capitalism.
ASML High-NA Twinscan EXE lithography machines have a cost of approximately $380 million. I am uncertain about the number of machines required (approximately 5-6). Additionally, I would like to know the typical workflow for this type of plant.
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ASML's High-NA chipmaking tool will cost $380 million — the company already has orders for '10 to 20' machines and is ramping up production
ASML turns up the production dial.www.tomshardware.com
Trump probably did not even tweet that, it was a staffer.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.
I'm not an expert in the subcomponent compensation, but yeah... I don't see where the margin is in having US hands manufacture a $0.06 capacitor or $1.37 PCB.Interested in your perspective here
With the low wages I assume are associated with most of this, would we even be able to provide this domestically?
(my assumption is "no")
I don’t believe for a second that Trump leaves it to staff to post in his name.Trump probably did not even tweet that, it was a staffer.
How will this affect product quality, made in America has not the best reputation here in Europe. I own a car and some other products build in the states and I can see why.
For a sufficient number of *manufacturing* jobs created in the U.S., that could add a significant reduction in tariffs, potential or real, plus the trickle down effect of cash going to subcontractors and consumer suppliers in the U.S., and paying U.S. taxes, rather than that cash flowing to China and et.al., with those taxes and profits flowing outward from the U.S.While I am very happy Apple is showing willingness to on shore manufacturing again (was the Mac Pro the last attempt?), 20,000 jobs for a $500 BILLION investment seems a poor value proposition. That’s $25 MILLION for each job added.
My completely imaginary guess is that the $1 million investment by Cook bought him the ability to get much more than that back in subsidies for building those factories, most of which was probably already planned, so that Trump could hold it up as a “win”.Had to laugh out loud at this line:
"Trump, in a Truth Social post, thanked Apple and Cook, saying the move reflected the company’s faith in his administration."
No, Don, it represents nothing other than Tim knowing he has no choice but to participate in your Mob shakedowns
Says the person who probably manufactures in China.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.
I have a friend who does manufacture in the US, is sub $200, competes against Chinese copies, and does just fine.I'm not an expert in the subcomponent compensation, but yeah... I don't see where the margin is in having US hands manufacture a $0.06 capacitor or $1.37 PCB.
My products cost about $6/unit to make, another $5 to ship, Amazon takes their $8 cut and I sell it for $29.95. After taxes and paying my bills, I walk away with about $3 or 4 per unit sold. I don't see how US manufacturing would keep me solvent, because American customers don't want to pay $49 for a stocking stuffer that used to be $29... they'd see my $49 "final assembly in the USA" and still buy the tariffed $32 import from China, 99% of the time.
Obviously an Apple iPhone for $1000 or a $32,000 Toyota Camry has a different margin... but for the sub $200 "toy/curiosity/impulse buy market"... the US manufacturing story isn't feasible.
Seems like there may be a lot things that are real that you do not believe.I don’t believe for a second that Trump leaves it to staff to post in his name.
I do, because 99.9% of Americans won't pay $49 or $79 for a scientific toy/gadget when my competitors will keep charging $29 for the identical Chinese-made one.Says the person who probably manufactures in China.
Here is my summary:
- 2026: Manufacturing facility in Houston producing Apple servers for Apple Intelligence. Foxconn will own the facility.
- Unknown: A supplier school in Michigan
- Unknown: Expand existing data centres in the US
- 2024: Chips manufactuering already occurring at the TMSC facility in Arizona handling some Apple Watches and iPads models. This factory was heavily subsidised under the Biden administration
- Unknown: 20,000 new jobs primarily on R&D, silicon engineering (for their chips), and artificial intelligence. These will not be factory jobs for the rural working class, but engineering jobs at mostly existing Apple locations.
- Unknown: Increase Apple's investment fund for small manufacturing companies by $10 billions