Apple announced a big US$100B investment to bolster the US chip manufacturing ecosystem, rare earth supply, and homegrown tech infrastructure. The commitment comes right on the heels of a bold announcement from former President Donald Trump, which would impose a 100 percent tax on chip imports while protecting domestically produced semiconductors and punishing reliance on foreign supply.
Apple US$100B investment will be rolled out under the newly announced American Manufacturing Program (AMP). Apple will invest US$600 billion in US innovation over the next four years, with this new commitment in fast forward on its reshoring play.
Between Apple’s Pledge and Trump’s Tariff Game
At a press event in the oval office, Trump described the 100% tariff on semiconductor imports (and subsequently made it very clear that firms that build, or are actively building, plants in the US, such as Apple) would be exempt. Apple CEO Tim Cook was there, and announced Apple’s 100 billion dollar investment to combat the tariffs initiative.
No one who really is building in the USA will have to pay tax NO TARIFFS! @OANN — Donald J. Trump (@realDonaldTrump) October 11, 2023 He also said companies that misrepresent local production would be subject to retroactive penalties and the full tariffs. The story pointed to Apple’s commitment as an example of compliant foresight and a future-ready impulse.
Apple’s Clean $100B Agreement Comes After $500B Previous Commitment
Adding another investment — this time a $100B one — to the previous one: andApple’s US$500 billion investment announced in February. With this expansion, Apple will partner with 10 leading suppliers to advance their partnership stateside and solidify the company’s domestic commitment even further. Apple now supports over 450,000 jobs across all 50 states via its partners and intends to hire 20,000 more workers with focus on R&D, software development, AI, and chip design.
Key Projects Under Apple’s AMP
Here are some of AMP highlights:
- Harrodsburg, Kentucky: Working with Corning to manufacture iPhone and Apple Watch glass exclusively in the US
- Texas (Sherman): Buying Face ID lasers from Coherent, 12-inch wafers from GlobalWafers (using Corning’s Hemlock raw materials).
- Apple is the first customer of TSMC’s local chip fab and Amkor’s chip packaging plant for Arizona
- California: MP Materials will provide domestically-manufactured rare earth magnets and establish a recycling facility.
The other Apple US$100B stake will support Applied Materials and Texas Instruments, driving local semiconductor apparatus and chip sourcing.
Domestic Manufacturing of 5G and Silicon Elements
Apple also is increasing its work with Broadcom and GlobalFoundries to assemble US-based capacity for making 5G and wireless components. These are essential for connecting iPhones, Apple Watches and more all the way through the chain.
Apple and its New Framework for AI & Cloud Compute
A 250,000 sq. ft. server farm in Houston, Texas has commenced test production. It is optimized for supporting Apple Intelligence and Private Cloud Compute, further strengthening the secure and private AI that Apple built. Apple is also expanding data centers in North Carolina, Iowa, Nevada and Oregon for AI and cloud computing purposes.
Workforce Development and Manufacturing Academy
On August 19, Apple will open a Manufacturing Academy in Detroit to assist small and mid-size businesses in adopting AI and smart manufacturing. At the same time, Apple is building its second Austin campus, which will include R&D labs and help accommodate its growing Texas workforce.
Localization of a Silicon Supply Chain
Central to the Apple US$100B investment is building an American, end-to-end silicon supply chain. They’re collaborating with TSMC, GlobalWafers, TI, etc to produce over 19 billion chips for Apple products in 2025 in the USA from wafer to packaging.
For the first time, consumer electronics will be packaged in the US on 12-inch wafers, as part of the initiative. Given geopolitical tensions, Apple is angelically aligning with Trumps economic strategy in a smart shopping cart with tawny wheels, highlighting it seems to wisely protect its lines of flight.
FAQ
This is part of the hefty investment Apple is planning to make in strengthening its own silicon ecosystem and rare earth supply chain, along with chip production in the US.
This investment lines up with Trump’s 100 percent import tariff on chips. Tariffs will be avoided for companies such as Apple that are building in the US.
The company backs over 450,000 jobs right now and will itself employ another 20,000 in higher tech positions.
Those states are Kentucky, Texas, Arizona, California, North Carolina, Iowa, Nevada, and Oregon and Michigan —
By 2025, it also wants all cover glass for iPhone and Apple Watch, Face ID lasers, as well as 5G components, silicon chips, and more to be “made in America.”
