Apple on Monday announced plans to invest up to $500 billion, including plans to open a new artificial intelligence server factory in Texas.
Apple said it will partner with Foxconn to build a 250,000-square-foot server manufacturing facility in Houston to produce Apple Intelligence servers. The new facility is scheduled to be operational by 2026 and will be part of Apple's major investment plan over the next four years.
In addition to the new Texas plant, Apple said it plans to hire about 20,000 new workers nationwide. Apple said most of the new hires will be in research and development (R&D), chip engineering, software development, artificial intelligence and machine learning.
In a statement Monday, Cook said,
"We are confident in the future of American innovation and are proud to further our long-standing commitment to investing in the United States through this $500 billion investment plan."
Apple said its $500bn investment plan would include partnerships with suppliers across the US, production of content for its Apple TV+ streaming service in 20 states, new hires and research and development spending.
Apple said it "remains one of the largest tax payers in the United States, having paid more than $75 billion in U.S. taxes over the past five years and $19 billion in 2024 alone."
The tech giant also said it would increase its U.S. Advanced Manufacturing Fund to $10 billion from the current $5 billion, create a new manufacturing academy in Michigan, and expand its U.S. research and development investments to support cutting-edge areas such as chip engineering.
It is worth noting that the announcement of the investment plan comes after Apple CEO Tim Cook met with US President Trump last week.
According to previous articles seen by Wall Street, US President Donald Trump said at a meeting attended by governors on Friday that Cook promised him to move production of Apple products from Mexico to the United States. Cook also pledged that Apple would invest hundreds of millions of dollars in the United States. Trump revealed that Apple is investing in China because it does not want to pay tariffs.
Wall Street has previously quoted analysts as pointing out that Apple's move is both a response to the Trump administration's policies and a strategic move to protect its own interests. By increasing domestic investment and employment, Apple hopes to avoid potentially steep tariffs while maintaining its high profit margins and product pricing strategy.
Here's the original text of Apple's press release on Monday:
Apple today announced its largest investment commitment to date, with plans to spend more than $500 billion in the United States over the next four years. This new commitment builds on Apple's long-term investment in American innovation and high-skill manufacturing, and will support broad initiatives in areas as diverse as artificial intelligence, chip engineering, and skills development for students and workers across the country.
"We believe in the future of American innovation and are proud to build on our long-term investment by committing an additional $500 billion to power America's future," said Tim Cook, Apple's chief executive officer. "From doubling the Advanced Manufacturing Fund to building advanced technology in Texas, we are excited to further support American manufacturing." At the same time, we will continue to partner with individuals and companies across the country to write an extraordinary new chapter in the history of American innovation."
New manufacturing facilities in the United States
As part of the U.S. investment plan, Apple and its partners will begin production of servers in Houston later this year. The 250,000-square-foot server manufacturing facility is scheduled to officially open in 2026 and will create thousands of jobs.
Previously, the servers were manufactured outside the United States, and the one to be assembled in Houston will play a key role in Apple Intelligence. These servers are the foundation of Apple's Private Cloud Compute, which combines powerful AI processing power with the largest and most advanced security architecture to date to power AI cloud computing. These servers are the culmination of years of research and development by Apple engineers, bringing the industry-leading security and performance of Apple chips to the data center.
The Apple team designed these servers with a special focus on energy efficiency to reduce the energy needs of Apple's data centers, which already run on 100 percent renewable energy. With the expansion of Apple Smart Systems across the United States, Apple also plans to continue expanding its data center capacity in North Carolina, Iowa, Oregon, Arizona and Nevada.
Double the American Advanced Manufacturing Fund
As part of the new investment, Apple is doubling the size of its U.S. Advanced Manufacturing Fund from $5 billion to $10 billion. The fund was established in 2017 to support world-class innovation and job growth in high-skilled manufacturing in the United States. This additional commitment will focus on promoting advanced manufacturing and skills development across the country.
The fund expansion includes Apple's commitment of more than $100 million to TSMC's Fab 21 plant in Arizona. Apple is the largest customer of the advanced manufacturing facility, which employs more than 2,000 workers to produce Apple chips. Mass production of Apple's chips officially began last month.
The chips used by Apple are carefully designed to provide users with superior functionality, performance and energy efficiency, playing a key role in Apple devices around the world. Apple's suppliers already produce chips at 24 factories in 12 states, including Arizona, Colorado, Oregon and Utah. Apple's investments in the sector have helped create thousands of high-paying jobs at U.S. companies like Broadcom, Texas Instruments, Skyworks and Qorvo.
To date, Apple's U.S. Advanced Manufacturing Fund has supported projects in 13 states - including Kentucky, Pennsylvania, Texas, and Indiana - that help local businesses grow, train workers, and develop a range of innovative manufacturing processes and materials for Apple products.
Expand U.S. investment in research and development
Apple continues to expand its research and development investment in the United States. Apple has nearly doubled its spending on advanced research and development in the United States over the past five years, and plans to continue to accelerate growth.
Recently, Apple announced the latest iPhone 16e. With the A18 chip and the new Apple C1 modem, the phone delivers fast and smooth performance and groundbreaking battery life. The Apple C1 is the first cellular modem designed by Apple, and the most energy-efficient modem on the iPhone to date. This innovation is the result of years of research and development investment, bringing together the efforts of thousands of engineers. The Apple C1 also marks a new chapter in Apple's chip strategy, setting the stage for modem system innovation and optimization for more Apple products in the future.
Over the next four years, Apple plans to hire about 20,000 people, the vast majority of whom will be in research and development, chip engineering, software development, and artificial intelligence and machine learning. The expansion commitment also includes significant investments in Apple's research and development centers across the United States, with a focus on custom chips, hardware engineering, software development, artificial intelligence and machine learning.
Establish a manufacturing academy in Detroit to support American business
To help companies transition to advanced Manufacturing, Apple will establish an "Apple Manufacturing Academy" in Detroit. Apple engineers will work with experts from top universities such as Michigan State University to advise small and medium-sized businesses on implementing AI and smart manufacturing technologies. The school will also offer free offline and online courses covering key skills such as project management and manufacturing process optimization. Through these courses, Apple hopes to drive productivity, efficiency and quality in its supply chain.
Apple has a long-standing commitment to investing in the education and skills development of American workers and students. This includes ongoing funding for organizations like 4-H, Boys & Girls Clubs of America, and FIRST, which work closely with Apple to provide free coding skills training to teens across the country.
Apple's support for the next generation of innovators also includes the New Silicon Initiative, which aims to train future hardware engineers and chip design talent. Last year, the program expanded to Georgia Tech and now covers eight colleges and universities across the country. This year, Apple will also launch a new collaboration with the Center for Microchip Design Education (CEMiD) at UCLA to further expand the reach of the program.
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