Apple announced Monday its plan to establish a 250,000-square-foot factory in Texas by 2026, where it will manufacture artificial intelligence servers to support its AI-driven features.
The move is part of a broader $500 billion investment in the United States over the next four years, which also includes job creation, supplier partnerships, and infrastructure expansion.
As part of this initiative, Apple intends to add 20,000 research and development jobs across the country.
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However, the company did not specify how much of the $500 billion was already allocated to its US supply base, which includes firms like Corning, known for producing iPhone glass in Kentucky.
The announcement follows reports that Apple CEO, Tim Cook recently met with President Donald Trump, whose administration imposed a 10% tariff on certain Chinese-assembled Apple products earlier this month.
Apple previously obtained waivers from similar tariffs during Trump’s first term.
Apple made a comparable commitment during the previous Trump administration, pledging $350 billion in US investments over five years.
Following Monday’s announcement, Apple’s stock saw a slight dip in pre-market trading.
Trump responded to the news on Truth Social, thanking Apple and Cook, stating that the company’s decision reflected “faith in his administration.”
While most of Apple’s consumer devices are assembled abroad, many of its key components are produced domestically, including chips from Broadcom, SkyWorks Solutions, and Qorvo
In line with its investment strategy, Apple began mass production of its own custom-designed chips last month at an Arizona facility owned by Taiwan Semiconductor Manufacturing Co.
Bringing TSMC to the US and helping introduce the CHIPS Act—a law aimed at boosting domestic semiconductor production—were among Trump’s major industrial policy efforts during his first term.
As part of its AI expansion, Apple confirmed it will work with Foxconn—formally known as Hon Hai Precision Industry to develop the new AI server facility in Houston.
These servers, which currently power Apple Intelligence, are presently manufactured outside the US, but the new factory will bring their assembly stateside.
In addition to manufacturing expansion, Apple will double its Advanced Manufacturing Fund from $5 billion to $10 billion, with a portion of this increase representing a “multibillion-dollar commitment” to producing advanced silicon at TSMC’s Arizona plant.
While Apple has not disclosed specific terms of its deal with TSMC, the fund has historically helped Apple’s suppliers build the necessary infrastructure to support its operations.
Apple also plans to establish a manufacturing academy in Michigan, where its engineers and local university faculty will offer free courses to small and mid-sized manufacturing firms.
These courses will focus on project management and process optimization, supporting the growth of US manufacturing expertise.
(Reuters)
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