Apple Signs Lease for Large Manufacturing Facility in Milpitas, California

Discussion in 'Mac Blog Discussion' started by MacRumors, Oct 21, 2018.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple has reportedly signed a 10-year lease for nearly 314,000 square feet of industrial manufacturing space in Santa Clara County, California (via Silicon Valley Business Journal).

    The agreement between Apple and project developer McCarthy Ranch is for a single-story warehouse facility located at McCarthy Creekside, a new multiphase development in the city of Milpitas, for which Apple is said to be paying around 90 cents per square foot.

    Render depicting corner of 800,000 square foot industrial development in Milpitas

    Silicon Valley's vacancy rate was already a miniscule 1.5 percent, but the deal has reportedly made it hit an all-time low of just to 0.7 percent, according to the Journal.
    It's not yet clear what Apple's plans are for the industrial space north of San Jose, but developer Joey McCarthy told the Journal that McCarthy Creekside is purpose-built for "industrial, R&D, [and] manufacturing."

    Aside from specialist operations like the Mac Pro facility in Austin, Texas, the vast majority of Apple's manufacturing takes place outside of the U.S., which adds an extra layer of intrigue to the company's intentions in Milpitas.

    On the other hand, the space could indicate an expansion of Apple's autonomous car project. Apple is believed to be using several Bay Area facilities for its self-driving car research, while McCarthy Creekside is already home to autonomous driving R&D, with a building on the development having been leased to electric vehicle maker SF Motors.

    Article Link: Apple Signs Lease for Large Manufacturing Facility in Milpitas, California
  2. neuropsychguy macrumors 65816


    Sep 29, 2008
    They have to make all those Apple Watch bands somewhere.
  3. cmaier macrumors G5

    Jul 25, 2007
    I was just over there yesterday. Going to wonders for the traffic.
  4. Mactendo macrumors 68000

    Oct 3, 2012
    Apple Ship
  5. Ion-X macrumors member


    Oct 23, 2017
    If I had to take a guess, the only reason they are leading such expensive space is for R and D by HQ employees, not mass manufacturing. Probably the Car project because that requires large open spaces.
  6. KGB7 Suspended


    Jun 15, 2017
    Rockville, MD
  7. Kabeyun macrumors 68020


    Mar 27, 2004
    Eastern USA
    There’s a Mac Pro facility? What on Earth do they do there?
  8. jecowa, Oct 21, 2018
    Last edited: Oct 21, 2018

    jecowa macrumors regular

    Mar 15, 2006
  9. CTHarrryH macrumors 68000

    Jul 4, 2012
    I would think that location would be very expensive for manufacturing not only facility costs but for that type of labor. I know manufacturing is done mostly by machines but some labor is still involved with construction, shipping etc.
    I would think special purpose facility as in car research
  10. lec0rsaire, Oct 21, 2018
    Last edited: Oct 21, 2018

    lec0rsaire macrumors 65816

    Feb 23, 2017
    If a MacBook Pro suddenly had Designed in California/Assembled in California on it I would pay $1k more. It’s nice to see made in America for a change.
  11. samcow macrumors regular

    Oct 20, 2015
    I don’t know you, but sorry I really highly doubt that’s true. If there was an option for the $2500 MacBook assembled in china and then the exact same thing for $3500 assembled in the US, I don’t see you opting for the $3500 model.
  12. Craigy macrumors 6502

    Jan 14, 2003
    New Zealand
    There is just a short amount of time before before all assembly will be automated and labour costs will be an almost irrelevant part of the manufacturing process. I can see almost all of Apple's manufacturing taking part in the new country of California once it becomes independent from the rest of the US (The last bit was tongue in cheek before someone gets angry.)
  13. rulymammoth macrumors regular

    Jun 8, 2015
    More power to ya. I sure wouldn’t. Would be fine with $100 more, but $1k? Nah.
  14. lec0rsaire macrumors 65816

    Feb 23, 2017
    Of course not but there would be if they stopped Chinese production. While I’ve never had a Mac Pro, I’ve always admired seeing USA on them. It’s a sign of the best quality with no compromises.

    It’s like my guitars and amps. When I look at the back of my Mesa Boogie tube head and see handbuilt in Petaluma, California it just makes me feel good. That means that it was put together by proud workers who care about making the beat stuff possible.
  15. ruger Suspended

    Sep 12, 2018
    This has to be for the manufacturing of the new Mac Mini that is almost certainly coming
  16. lec0rsaire macrumors 65816

    Feb 23, 2017
    Then why would I buy this? There are much cheaper options trust me! I don’t care about paying for quality.
  17. NoNothing macrumors 6502

    Aug 9, 2003
    That was good. Thanks.
    --- Post Merged, Oct 21, 2018 ---
    That was done 6 months ago if it is coming this month.
  18. sinsin07 macrumors 68040

    Mar 28, 2009
    No, it’s a sign of your imagination trying to present itself as fact.
    That’s nice and all but ¯\_(ツ)_/¯?
    In order for the above to be true, you would need to show data substationing that statement.
    Otherwise, again it’s just your imagination working overtime.
  19. MacManiac1 macrumors regular


    Sep 7, 2017
    Something isn’t right about this article. They are quoting 90 cents a square foot. Nothing is that inexpensive. Especially in a hot market like California.
  20. CarlJ macrumors 68030


    Feb 23, 2004
    San Diego, CA, USA
    Clearly this building will be used for manufacturing music of some sort.
  21. sinsin07 macrumors 68040

    Mar 28, 2009
    1: No one knows if you bought that. It's a pic of a random arm wearing a Rolex.
    2: Shouldn't you know why you buy something.

    In any regard, this comment and pic below doesn't seem to jive with your previous comment:
  22. rightontron macrumors newbie


    Oct 21, 2018
  23. Michael Scrip macrumors 603

    Mar 4, 2011
    USA! USA!

    "I think we designed ourselves into a bit of a thermal corner..." - Apple Top Executive


  24. sinsin07 macrumors 68040

    Mar 28, 2009
    So far the above two post win this thread.:D
  25. danny842003 macrumors 6502a


    Jun 6, 2017
    Which is why American cars are so popular overseas.

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