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Big tech’s latest pivot to match the mood in Washington is Apple’s announcement of a $500 billion investment on U.S. soil over four years. Apple also plans to hire 20,000 people and invest in several manufacturing initiatives, including a new factory in Houston, Texas.
“From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing,” said Apple CEO Tim Cook in a press release on February 24. “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.”
Apple plans a new manufacturing facility and other investments
The new advanced manufacturing facility in Houston will be used to make servers for Apple Intelligence, its generative AI features. The servers will support data stored in Private Cloud Compute, Apple’s place for sequestering away the data users give to its generative AI. Apple plans to build a 250,000-square-foot facility that will be operational in 2026, which will create “thousands” of job openings.
Apple also plans to:
- Double the U.S. Advanced Manufacturing Fund, which was created in 2017.
- Accelerate investments in research and development for AI and silicon engineering in the U.S.
- Expand data center capacity in North Carolina, Iowa, Oregon, Arizona, and Nevada.
- Create a manufacturing academy in Michigan to create an easier pipeline for potential workers, with collaboration with youth groups such as 4-H, Boys & Girls Clubs of America, and FIRST.
Apple claimed its data centers run entirely on renewable energy. The company noted that it is the largest customer at TSMC’s Fab 21 facility in Arizona and has 24 silicon manufacturing factories across 12 U.S. states.
The Trump administration’s tariffs are an attempt to foster U.S. products, particularly as opposed to Chinese and Mexican-made products.
Companies rally to show support for U.S. production
The $500 billion number may be familiar from the $500 billion joint venture The Stargate Project, which has contributions from SoftBank, OpenAI, and Oracle.
As Axios pointed out, monetary commitments to signal new eras of innovation under a new president are not unique to the Trump administration. Apple’s plan for a new research campus in North Carolina four years ago has been paused.