Apple pledges additional $100 billion investment in US

Apple has announced it will invest an additional $100 billion in the United States, raising its total domestic investment commitment to $600 billion over the next four years. The move comes as former President Donald Trump ramps up pressure on American tech companies to shift production back home.

“This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America,” Trump said during a briefing at the Oval Office, where Apple CEO Tim Cook presented him with a US-made souvenir mounted on a 24-karat gold base.

“Companies like Apple, they’re coming home. They’re all coming home,” he added.

Cook acknowledged the political push but pointed out that although many components like semiconductors, Face ID modules and glass are already manufactured in the US, final iPhone assembly would continue abroad “for a while.”

The announcement focuses on expanding Apple’s supply chain and advanced manufacturing footprint in the US, but it falls short of Trump’s demands that the company fully localise production.

In May, Trump had threatened to impose a 25 percent tariff on Apple’s overseas-made products. His earlier tariff policies during his presidency had exempted electronics like smartphones and laptops, but this latest threat posed a sharp shift, prompting speculation that Apple’s fresh investment could be a strategic move to avoid such penalties.

Despite the eye-catching numbers, analysts have pointed out that Apple’s current spending levels are consistent with past commitments made during both Trump’s and Biden’s administrations.

Apple has a mixed record when it comes to delivering on US investment promises. A notable example includes a Texas factory promoted as a new manufacturing site during Trump’s previous term, which was later revealed to have been operational since 2013. That production has since moved to Thailand.

Most of Apple’s manufacturing still takes place in Asia, particularly in China, although the company has expanded into India, Thailand and Vietnam. Experts widely agree that producing iPhones entirely in the US remains unrealistic due to high labour costs and the complexity of the global supply chain.

Apple’s partners in the new US investment effort include Corning, Applied Materials, Texas Instruments, GlobalFoundries, Broadcom and Samsung. Samsung will supply chips from its Texas facility, and GlobalWafers will contribute 300mm silicon wafers from its Texas plant.

Following the announcement, Apple shares rose 5 percent. Corning saw a nearly 4 percent jump in after-hours trading, while Applied Materials gained close to 2 percent.