E-Paper
Sign In
Apple commits $100 billion more to US manufacturing
The tech giant’s pledge raises its domestic investment to $600 billion, aligning with Trump’s reshoring agenda while shielding Apple from looming tariffs
- PUBLISHED: Sat 30 Aug 2025, 9:00 AM
In a strategic deal witnessed by Apple CEO Tim Cook and President Donald Trump in the White House’s Oval Office on August 6, 2025, Apple announced an additional $100 billion commitment to US manufacturing. This raised its total domestic investment pledge to $600 billion over the next four years, spanning advanced manufacturing, supply-chain expansion, and technology development. Tim Cook introduced the initiative as the launch of Apple’s American Manufacturing Programme (AMP), aimed at accelerating production of key components, such as iPhone and Apple Watch glass, rare earth magnets, and semiconductors within the United States. Under AMP, Apple will work with at least 10 US partners, including Corning, Applied Materials, Texas Instruments, Broadcom, GlobalWafers, Coherent, Amkor, Samsung, GlobalFoundries, and MP Materials.
Strengthening US Supply Chains and Innovation
Recommended For You
A flagship example of AMP’s tangible impact is the expansion of Corning’s Harrodsburg, Kentucky facility — soon to become home to the world’s largest smartphone cover-glass production line. Every iPhone and Apple Watch worldwide is expected to feature Kentucky-made glass, with a new Apple-Corning Innovation Centre to support future design and manufacturing innovation.
The programme extends to specialised components like VCSEL lasers used for Face ID which will be produced at Coherent’s facility in Sherman, Texas. It also significantly increases US sourcing of rare earth magnets from MP Materials (Fort Worth, Texas), including setting up a rare-earth recycling line in Mountain Pass, California. On the semiconductor front, Apple is building an end-to-end domestic supply chain. Partnering with GlobalWafers America, Applied Materials (Austin, Texas), and chipmakers like Texas Instruments (Utah and Texas) and TSMC’s Arizona plant, Apple aims to produce more than 19 billion chips in the US for its products in 2025.
Beyond manufacturing, the broader economic footprint is substantial. Apple currently supports over 450,000 jobs across its supplier and partner network in all 50 US states and operates in 79 US factories. With this investment boost, Apple also plans to directly hire 20,000 employees, primarily focused on R&D, silicon engineering, software development, and AI/machine learning.
Tariff Pressures and Political Strategy
The backdrop for this announcement was steeped in trade policy drama. Earlier in May, President Trump had threatened a 25% tariff on Apple’s overseas–manufactured products, reversing prior exemptions on electronics imported from China. These tariff threats compounded the company’s challenges, costing Apple an estimated $800 million in the June quarter. At the same event, Trump also warned of a forthcoming 100% tariff on computer chips, with a major caveat: companies committed to US manufacturing like Apple would be exempt. Analysts quickly viewed Apple’s expanded investment as a way to sidestep these tariff threats.
Wall Street responded positively. Apple’s stock rose nearly 5% following the announcement, while shares of Corning and Applied Materials also climbed by nearly 4% and 2% respectively in extended trading. Analysts from firms like Wedbush Securities and Citi described the move as a politically savvy maneuver, helping Apple regain favor amid trade tensions.
Yet some analysts remain cautious. Despite the enormity of the $600 billion figure, much of it aligns with Apple’s existing spending trajectory. As noted by business observers, the additional annual outlay equates to roughly $25 billion more than prior plans — meaning the announcement largely accelerates pre-existing commitments rather than introduces an entirely new funding frontier. Furthermore, full-scale iPhone assembly in the US remains off the table, with Cook noting that while many components are US-made, final assembly will remain overseas "for a while" due to cost and supply-chain complexity.
Still, the move carries strategic weight. It signals Apple’s willingness to align with US policy objectives, strengthen supply-chain resilience, and bolster domestic innovation, especially in semiconductors and AI. For President Trump, the announcement offers a powerful narrative of reshoring, American jobs, and industrial revival.
As a passionate storyteller and content writer, Kushmita Bose loves weaving narratives that inform, inspire, and entertain. Whether she's unraveling tech revolutions, dissecting industry reports, or bringing a brand’s journey to life, Kushmita thrives on transforming ideas into captivating stories. When she’s not busy crafting content, you’ll probably find her daydreaming about her next travel adventure.
