Apple commits to $500bn US investment #CanadaFinance

Apple plans to invest more than $500bn (£396bn) in the US over the next four years, starting with a new advanced manufacturing factory in Texas.

The tech giant said it expected to create 20,000 new jobs over that time, with the “vast majority” of roles in research and development, software and artificial intelligence (AI).

It is not clear to what extent the spending is an acceleration of the company’s current activities. Apple said the sum included everything from spending on suppliers to Apple TV+ productions.

The announcement comes days after Apple boss Tim Cook met with President Donald Trump, who has made increased corporate investment in the US a priority.

In its announcement, Apple said its investment was its “largest-ever spend commitment” and would expand its support for American manufacturing.

“We are bullish on the future of American innovation,” Cook said.

The new 250,000 square foot factory in Houston, Texas, is set to produce servers that were “previously manufactured outside the US” to support Apple Intelligence, the company’s AI system, the company said.

The iPhone maker added it would open in 2026 and create “thousands” of jobs.

Apple is also expanding its data centre capacity in North Carolina, Iowa, Oregon, Arizona, and Nevada, and doubling its support for a fund dedicated to US manufacturing, which it created in Trump’s first term, from $5bn to $10bn.

Trump previewed the announcement last week, claiming it was partially a response to his trade policies, including tariffs.

On Monday, the president took credit for the news on social media, saying the reason for the investment was “faith in what we are doing, without which, they wouldn’t be investing ten cents”.

Trump has said he wants to see more companies making their products in the US, threatening to raise tariffs drastically in a bid to make domestic manufacturing more attractive.

Last month, he imposed a new 10% border tax on all imports from China, where Apple has a significant manufacturing presence.

He has also proposed tariffs on products made in many other countries, including neighbouring nations Mexico and Canada.

Dan Ives, analyst at Wedbush Securities, said the announcement was a “strategic move” to diversify the company’s manufacturing operations “while also playing well into Trump’s US investment theme”.

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“Cook continues to prove that he is 10% politician and 90% CEO,” he wrote in a note.

Apple in 2021 said it was investing $430bn in the US and would add 20,000 new jobs across the country over five years.

Ives said the initiatives announced by Apple on Monday did not seem to signal a big shift in the company’s manufacturing plans for China, noting that the areas in question were not a focus of its activities there.