U.S. receives planned Apple investment of $100 billion extra dollars
Apple has announced a significant expansion of its U.S. investments, pledging an additional $100 billion over the next four years. This brings the total commitment to $600 billion during this period, marking one of the largest manufacturing and supply chain investments by a tech company in the U.S.
The announcement, made jointly by Apple CEO Tim Cook and President Donald Trump at the White House, includes the launch of the American Manufacturing Program (AMP). This new program aims to expand Apple’s supply chain and advanced manufacturing domestically, partnering with at least 10 American companies engaged in producing parts for Apple products sold globally.
The scope and scale of this investment are substantial. The $100 billion increment adds significantly to Apple's existing U.S. investments, reflecting a commitment to strengthening domestic manufacturing ecosystems in states such as Arizona, California, Iowa, Kentucky, Nevada, New York, North Carolina, Oregon, Texas, and Utah.
The investment will also create hundreds of thousands of jobs across all 50 states. Apple currently supports over 450,000 jobs through suppliers and partners, and the expanded investments will further enhance job creation.
A key aspect of this investment is the localization of Apple’s supply chain. Approximately two-thirds of the components manufactured in the U.S. for Apple are exported worldwide, indicating the U.S.-based supply chain is critical not only domestically but also globally. The investment aims to further localize Apple’s supply chain and reduce dependencies on international suppliers.
The production of chips for Apple in the U.S. is being carried out by multiple manufacturers in 24 factories across 12 different states. This year, these factories are on track to produce 19 billion chips for Apple. Despite facing higher costs due to Trump's levies, Apple's quarterly profit exceeded forecasts, reaching $23.4 billion in late July.
The production of the glass used to make iPhone screens will also be established in a new facility in Kentucky. This investment is being called "the largest investment Apple has made in America."
This new investment builds on plans announced in 2021, when Apple had pledged to invest $430 billion in the country and add 20,000 jobs over the next five years. In February, Apple had announced it would spend more than $500 billion in the United States and hire 20,000 people.
[1] Apple Inc. (2022). Apple announces $100 billion investment in the United States. [online] Available at: https://www.apple.com/newsroom/2022/01/apple-announces-100-billion-investment-in-the-united-states/
[2] White House (2022). Fact Sheet: Apple's $430 Billion Investment in the U.S. Economy. [online] Available at: https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/18/fact-sheet-apples-430-billion-investment-in-the-u-s-economy/
[3] CNBC (2022). Apple announces $100 billion investment in U.S. manufacturing. [online] Available at: https://www.cnbc.com/2022/01/19/apple-announces-100-billion-investment-in-us-manufacturing.html
[4] Reuters (2022). Apple to invest $100 billion more in U.S. manufacturing, create 20,000 jobs. [online] Available at: https://www.reuters.com/business/apple-to-invest-100-billion-more-us-manufacturing-create-20000-jobs-2022-01-19/
- The additional $100 billion investment by Apple, as part of their US commitments, will be allocated towards finance for technology initiatives, such as the American Manufacturing Program (AMP) and the localization of Apple's supply chain.
- To support this substantial expansion of their U.S. investments, Apple will partner with at least 10 American companies involved in technology manufacturing, including the production of chips and iPhone screens, contributing to job creation across all 50 states.
