Apple's Massive $500 Billion US Investment Includes A Texas AI Chip Plant
Apple has announced plans to spend and invest more than $500 billion in the United States over the next four years, a commitment that came days after President Trump said the company was going to "build here because they don't want to pay tariffs." Part of Apple's massive investment includes a new 250,000 square-foot manufacturing facility in Houston, Texas to crank out servers supporting Apple Intelligence (AI). The facility is on track to open next year.
In a statement, Apple CEO Tim Cook said the company was "bullish on the future of American innovation," hence the commitment to spend half a trillion dollars over the next several years.
"From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing. And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation," Cook said.
Apple's press release doesn't present a fully detailed audit to the public on how it plans to allocate $500 billion over four years, though it does mention several areas more generally. According to Apple, part of the spending includes working with thousands of suppliers across all 50 states, direct employment, Apple Intelligence infrastructure and data centers, corporate facilities, and Apple TV+ productions in 20 states.
That last bit is slightly eyebrow raising, depending on how much of the $500 billion commitment gets earmarked to Apple TV+. Streaming is a big business these days, with companies spending exorbitantly on original TV shows and movies. That's benefited Apple TV+ with some excellent programming such as "Severance," Ted Lasso," "Shrinking," and the list goes on.
Be that as it may, the hope from our vantage point is the majority of Apple's spending will go towards manufacturing in the US, rather than presenting an inflated figure that's largely centered on entertainment. We suspect those details will come to light in time.
Apple did say it was doubling its US Advanced Manufacturing Fund, which it created in 2017, from $5 billion to $10 billion. Part of the fund's expansion includes a commitment from Apple to manufacture advanced silicon in TSMC's Fab 21 facility in Arizona, making Apple it's largest customer.
That still leaves $490 billion, some of which will go towards expanding its R&D business across the US. Apple also said it intends to hire around 20,000 people, most of which will be focused on R&D, silicon engineering, software development, and AI and machine learning.
Additionally, Apple said it is opening an Apple Manufacturing Academy in Detroit, Michigan.
"Apple engineers, along with experts from top universities such as Michigan State, will consult with small- and medium-sized businesses on implementing AI and smart manufacturing techniques. The academy will also offer free in-person and online courses, with a skills development curriculum that teaches workers vital skills like project management and manufacturing process optimization. The courses will help drive productivity, efficiency, and quality in companies’ supply chains," Apple said.
Apple also said it is expanding teams and facilities in multiple states, Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington. It all certainly sounds ambitious and promising from the details shared in Apple's press release, though don't expect things like iPhone devices and Macs to be produced en masse on US soil any time soon.
