Economy USA

Apple Pledges $500 Billion Investment in US, Amid Tariff Threats,nAI Push

Apple Pledges $500 Billion Investment in US, Amid Tariff Threats,nAI Push
Source: Reuters
  • PublishedFebruary 25, 2025

Apple announced a sweeping commitment to invest over $500 billion in the United States over the next four years, including plans to create 20,000 jobs and establish a new server factory in Texas, Al Jazeera reports.

The move follows recent comments from President Donald Trump, who claimed Apple CEO Tim Cook had promised to shift manufacturing from Mexico to the US to avoid potential tariffs.

The tech giant’s announcement comes as Trump continues to hint at imposing tariffs on goods manufactured in China, a move that could significantly impact the cost of iPhones.

“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,” said Cook in a company blog post.

While the $500 billion figure encompasses a broad range of investments, including purchases from US suppliers for iPhone components and production costs for Apple TV+ content, the company declined to specify how much of the figure represents new spending beyond existing US supply chain relationships.

This announcement echoes a similar pledge made by Apple in early 2018, during the first Trump administration, promising to create 20,000 new jobs as part of a $350 billion investment in the US. At the time, Trump was also considering tariffs that could have impacted iPhones, though those tariffs were ultimately not implemented on Apple’s products.

Beyond the broad investment promise, Apple also revealed plans for a new factory in Houston, Texas, slated to open in 2026. This facility will focus on producing servers to power Apple Intelligence, the company’s suite of AI features designed to assist users with tasks like drafting emails. Apple claims this factory will create “thousands of jobs.”

The company is partnering with Foxconn, formally known as Hon Hai Precision Industry, to construct the Houston facility. This factory will be responsible for assembling servers that will be deployed in data centers supporting Apple Intelligence. Notably, these servers are currently manufactured outside of the US.