On Monday, February 24th, tech giant Apple announced that it is planning to invest over $500 billion in the United States over the next four years. This massive investment includes new manufacturing locations, doubling the manufacturing fund, and the expected hiring of 20,000 people.
Massive Investment from Apple
CEO Tim Cook said with this announcement, “We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future.” Before this announcement was released, When Trump was asked about the company, he said, “They don’t want to be in the tariffs.” This makes a lot of sense. The company has heavily relied upon the Chinese economy when producing products such as the iPhone. With tariffs in place, Cook and his team likely would have lost much money. The company would likely see greater profits by moving operations within the US amidst the tariffs.
Greater profits, however, due to higher costs. The cost of labor in the US is significantly higher than in China. Additionally, input costs of metals and chips could be more expensive due to other tariffs from Trump. With this announcement, some Apple lovers worry that product prices will increase in the next few years.
Soon after Tim Cook announced, Trump posted on his platform Truth Social, saying that the company’s actions are based on “faith in what we are doing.”
Where will the Money go?
Following the announcement, Apple plans to open a 250,000-square-foot server manufacturing factory in Texas, which is scheduled to open sometime in 2026. Apple needs these servers to power its new artificial intelligence tool, Apple Intelligence.
As mentioned, Apple plans to double its US manufacturing fund from $5 billion to $10 billion. Some of that money will be invested in Taiwan Semiconductor Manufacturing Company’s facility in Arizona.
Many are most interested in Apple’s massive hiring. Apple stated that it will focus most of these jobs on research and development, silicon engineering, software development, artificial intelligence, and machine learning. Apple also plans to open a manufacturing academy in Michigan so engineers can work with other businesses on the best way to implement AI and make the manufacturing process as efficient as possible.
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