Apple’s CEO, Tim Cook, and President Donald Trump, jointly announced on Wednesday that the tech giant will invest an additional $100 billion in U.S. companies and suppliers within the next four years. This move aims to encourage overseas firms to purchase more U.S.-manufactured components.
This commitment comes after Apple’s earlier pledge in February to spend $500 billion. “This is the largest investment Apple has ever made in America and anywhere else,” said President Trump. He also hinted that Apple, which has invested in other countries, is now refocusing its efforts on domestic investment.
Under its newly formed American Manufacturing Program, Apple will be working with companies like Corning, Coherent, GlobalWafers, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom. A significant portion of the program, $2.5 billion, will be allocated for a major expansion with Corning. The company, which manufactures glass for iPhones in Kentucky, will now produce all glass for iPhones and Apple Watches within the U.S.
Apple has also entered a multi-year supply agreement with Coherent for the production of lasers used in iPhone’s facial recognition system. The company anticipates that its U.S.-based supply chain will produce over 19 billion chips for its products this year, including those made by TSMC in Arizona, GlobalWafers, and Texas Instruments.
GlobalFoundries, a U.S.-based chip manufacturer, primarily for the U.S. government, confirmed it would produce wireless charging technology in New York.
This isn’t Apple’s first significant investment in the U.S. economy. Under the first Trump administration, the company committed to spending $350 billion over five years. In 2021, Apple pledged to invest $430 billion over five years. With Wednesday’s announcement, the company is now committed to spending $600 billion over four years.
However, Apple faces potential challenges with increased tariffs that could impact its profits. It’s currently absorbing costs from tariffs imposed on Chinese imports earlier this year, and could face higher import taxes on semiconductors pending a Section 232 investigation by the Trump Administration. Despite this, Apple maintains a positive outlook, stating that the majority of its U.S. phone sales are assembled in India to circumvent Chinese tariffs. Despite a potential 25% increase in India tariffs, White House sources suggest that Apple will remain “largely unaffected”. Apple estimates that tariffs could cost the company $1.1 billion in the current quarter.
