Apple to pour $100 billion into US; Arizona set to gain big

Apple and Trump Announce Major Investment in U.S. Manufacturing

Apple CEO Tim Cook met with former President Donald Trump at the White House to announce a significant expansion of the company’s investment in American manufacturing. The tech giant plans to add an additional $100 billion in investments over the next four years, marking a major shift in its strategy to bring more of its production closer to home.

“This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America,” Trump said during the press conference. He highlighted the announcement as one of the largest commitments in what he described as one of the greatest investment booms in the nation’s history.

The new investment is part of Apple’s broader initiative called the American Manufacturing Program. While it doesn’t mean that all iPhone components will be produced domestically, it includes expanding partnerships with 10 U.S.-based companies. These firms manufacture key components, including semiconductor chips, used in Apple products worldwide.

Arizona’s Role in the Expansion

Arizona has become a key player in Apple’s manufacturing strategy. In late 2023, reports indicated that Apple would use Amkor’s new advanced chip packaging facility in Arizona, which is located near TSMC, where Apple silicon is being manufactured.

Earlier this year, Apple announced a sweeping $500 billion investment in U.S. manufacturing, including a partnership with TSMC. This collaboration employs 2,000 workers and began producing chips for Apple in January.

TSMC recently announced a $65 billion investment to build three semiconductor fabs in north Phoenix. This marks the largest investment in Arizona’s history. When fully operational by the end of the decade, the project is expected to create 6,000 permanent jobs and more than 20,000 temporary construction jobs. TSMC also pledged to offset 100% of its carbon emissions, establish a worker safety committee, and invest millions into workforce development and K-12 STEM programs.

Apple’s Moves Under Trump

Apple had previously committed to investing $500 billion domestically, a figure now increased to $600 billion. However, the relationship between Apple and Trump has not always been smooth. In recent months, Trump criticized the company for planning to shift iPhone production to India to avoid tariffs on Chinese goods.

During a trip to Qatar earlier this year, Trump mentioned a conversation with Cook, stating, “I don’t want you building in India.” Apple’s latest pledge comes just weeks after it forged a $500 million deal with MP Materials, the only rare earths producer in the U.S. This agreement allows MP Materials to expand a factory in Texas to utilize recycled materials in producing magnets for iPhones.

Tim Cook emphasized during a recent investor call that Apple is doing more in the U.S., citing examples like the glass display and facial recognition module for iPhones, which are made domestically. He also hinted at future expansions of other components within the country.

“We’re doing more in this country, and that’s on top of having roughly 19 billion chips coming out of the US now, and we will do more,” Cook told analysts.

Market Reactions and Financial Outlook

Apple Inc., based in Cupertino, California, did not immediately comment on the announcement. However, the news caused the company’s stock price to surge by nearly 6% in midday trading. Analysts believe this reflects investor relief that Apple is showing support for the Trump administration.

Despite the recent gains, Apple’s shares are still down by 14% this year, partly due to challenges in the artificial intelligence sector. Bloomberg News first reported the details of Apple’s expanded investment commitment.