Apple to invest $500 billion in U.S., build AI server factory

Apple will invest $500 billion in the U.S. over four years, including an AI server factory in Texas and 20,000 new R&D jobs.

Apple (AAPL.O) announced on Monday that it plans to invest $500 billion in the United States over the next four years, including the construction of a large factory in Texas for artificial intelligence servers. The investment is also expected to create approximately 20,000 research and development jobs across the country.

This $500 billion expenditure will encompass a wide range of spending, from procurement from U.S. suppliers to the production of television shows and films for Apple TV+. However, the company declined to specify how much of this figure was already allocated for its U.S. supply chain, which includes firms such as Corning (GLW.N), a manufacturer of iPhone glass in Kentucky.

The announcement follows media reports that Apple CEO Tim Cook recently met with President Donald Trump. Many Apple products assembled in China could soon be subject to a 10% tariff imposed by Trump earlier this month, although the tech giant had previously secured exemptions from China tariffs during his first administration.

"This pledge represents a political gesture towards the Trump administration," said Gil Luria, an analyst at D.A. Davidson, who estimated that Apple already commits to spending over $150 billion per year in the U.S., including costs of goods sold and capital expenditure.

"Even without significantly increasing that spending, they would only need three to four years to fulfil their commitment," he added.

Apple made a similar announcement in 2018, during Trump's first term, stating that its new and ongoing investments would contribute $350 billion to the U.S. economy over five years.

Following Monday's news, Apple's shares rose by 1.2%.

In a post on Truth Social, Trump thanked Apple and Cook, stating that the investment demonstrated the company’s confidence in his administration.

Although most Apple consumer products are assembled outside the United States, many components are still manufactured domestically. These include chips supplied by Broadcom (AVGO.O), Skyworks Solutions (SWKS.O), and Qorvo (QRVO.O).

Last month, Apple announced that it had begun mass production of its own-designed chips at an Arizona facility owned by Taiwan Semiconductor Manufacturing Co (2330.TW).

Bringing TSMC to Arizona and supporting legislation that became the CHIPS Act—aimed at strengthening U.S. semiconductor manufacturing—were two of Trump's most significant industrial policy moves during his first term.

Apple also revealed plans to collaborate with Foxconn, officially known as Hon Hai Precision Industry (2317.TW), to construct a 250,000-square-foot facility in Houston. This site will assemble servers used in data centres to power Apple Intelligence, the company’s suite of AI-driven features designed to assist with tasks such as drafting emails. Apple noted that these servers are currently manufactured outside the U.S.

Additionally, Apple intends to expand its Advanced Manufacturing Fund from $5 billion to $10 billion. Part of this expansion includes a multi-billion-dollar commitment to producing advanced silicon at TSMC’s Arizona factory.

While Apple did not disclose specific details of its agreement with TSMC, the company has previously used the fund to support suppliers in developing the necessary infrastructure to provide products or services for Apple.

Furthermore, Apple will establish a manufacturing academy in Michigan, where its engineers—working alongside local university staff—will deliver free courses to small and mid-sized manufacturers. These courses will cover areas such as project management and manufacturing process optimisation.

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