The U.S. government is leaning hard on tech companies to make more commitments to building their businesses in the country, and Big Tech is falling in line. On Monday, Apple laid out its own plans in that area: it will spend $500 billion over the next four years in areas like high-end manufacturing, engineering, and education covering technologies like artificial intelligence and chip making.
Big projects will include a new factory in Houston, TX, to produce servers that support Apple’s company’s in-house AI effort, Apple Intelligence; doubling the value of Apple’s U.S. Advanced Manufacturing Fund to $10 billion; a new academy in Michigan to train people to work in next-generation factories; and more R&D.
Some of this is not “new” news. Apple has worked for years with thousands of suppliers across the U.S. in areas like chip making — currently 24 factories across 12 states — alongside directly employing people in the country. Globally, Apple employs 164,000 people, according to recent filings. It does not break out how many of them are in the U.S. specifically. It said today it plans to hire another 20,000 people in the next four years. But again, it does not specify if these people will be in the U.S. or elsewhere.
Nevertheless, Apple’s news is significant because of what it underscores. First, there is the bigger effort that the U.S. has been making to expand its economic footing, specifically to remove some of the reliance that the U.S. currently has on ecosystems outside of the U.S. itself, such as China for manufacturing. The U.S. is waging a fairly drastic effort to shift investment in line with that, for example, by floating new tariffs on certain goods in an effort to drive more national production.
Apple, as a major consumer electronics company, relies heavily on production outside of the U.S. The exercise of laying out plans to invest within the U.S. will not completely replace that, now or ever, but becomes a bone — a very valuable bone — that it can throw to show that it’s making efforts too.
Second, the focus on artificial intelligence in Apple’s news today should be noted. The major server factory that it will be building will be focused on building machines that can handle AI compute. Similarly, the ecosystem fund and training budget are largely focused on skills and manufacturing of hardware that will be used in AI systems.
Of note: it is not clear what kinds of tax breaks (if any) companies will get on the investments such as the ones Apple listed today. That will be top of mind for companies, their investors, and hopefully the U.S. public. Apple did note that it “remains one of the largest U.S. taxpayers, having paid more than $75 billion in U.S. taxes over the past five years, including $19 billion in 2024 alone.”
The news today, in any case, is being represented as Apple’s own commitment to growing America’s industry profile in the world.
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” said Tim Cook, Apple’s CEO, in a statement. “From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing. And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”
One of the bigger specific projects announced today will be a new 250,000-square-feet AI server manufacturing facility in Houston — taking on building services that up to now have been manufactured in other countries. Ground breaks later this year, and it will be completed by 2026, it said.
The project is important not just in value but also intention: Apple is doubling down on how it believes AI will be used within its products and services. So the project is coming along with an expansion of server capacity in Apple’s other data centers in North Carolina, Iowa, Oregon, Arizona, and Nevada.
“Teams at Apple designed the servers to be incredibly energy efficient, reducing the energy demands of Apple data centers,” Apple said, although it also claimed these are already run on renewable energy.
The manufacturing fund, in contrast, will be used to help finance expansions for its partners, including a “multibillion-dollar commitment” to TSMC for advanced silicon made in the latter company’s Fab 21 facility in Arizona. Apple said it is Fab 21’s largest customer.
Apple has not specified how much it has earmarked for educational initiatives aimed at training workforces — although the costs of building factories or investing in frontier-level research and development are likely to be substantial.
The first effort in that vein will be a new Apple Manufacturing Academy in Detroit, it said, where “Apple engineers, along with experts from top universities such as Michigan State,” will work in consultation with SMBs to help them implement “AI and smart manufacturing techniques.” That there are a large number of smaller businesses in that region that have worked in concert in other legacy industries like automotive, and it will be worth watching to see how and if they make the transition as envisioned.
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