Apple Announces Plan to Spend Additional $100bn on U.S. Suppliers, Supporting Trump’s Industrial Revival Push

President Donald Trump and Apple CEO, Tim Cook, announced on Wednesday a scanning plan that will see the technology giant investing an additional $ 100 billion in the American economy in the next four years – a movement that Trump has praised as the greatest commitment that Apple has ever made at national level or abroad.

The announcement strengthens Apple’s total in the process of promising American investments under the chairmanship of Trump at $ 600 billion, solidifying the position of the company as a central actor in the administration’s push to rebuild the industrial base of America.

Speaking alongside Cook in the White House, Trump praised the iPhone manufacturer to “go home” after years to be considered more invested in foreign manufacturing.

“This is the most important investment that Apple has ever made in America and everywhere else,” said Trump. “Apple was a bit of an investor in other countries, I will not say which ones, but a couple, and they go home.”

The new $ 100 billion commitment is based on a $ 500 billion commitment that Apple made in February, after Cook described as a direct challenge of Trump to do more.

“President Trump shared kind words about this work, but he also asked us to think about what we could get involved,” said Cook. “Mr. President, we took up this challenge very seriously.”

Apple’s extended investment includes a wide range of suppliers and installations based in the United States, with a declared objective of creating a flea supply chain and fully domestic components. At the center of this is the so-called Apple American manufacturing program, which now has more than a dozen strategic partners, including Corning, Coherent, Globalwafers, Applied Materials, Texas Instruments, Samsung, Globalfoundries, Amkor and Broadcom.

Glass, lasers and fries: Build Apple’s supply chain in America

Apple said it would spend $ 2.5 billion to extend its partnership with Corning, which manufactures glass for iPhones and Apple watches in its Kentucky facilities. On Wednesday, Cook presented Trump a memory made of the corning glass, symbolizing what the two leaders described as a long -term commitment to relocate advanced manufacturing.

The company also announced a multi -year agreement with Coherent to produce lasers used in the iPhone facial recognition system. Apple said the partnership would strengthen its American sensors supply chain, which is becoming more and more vital for its smartphone and laptops.

Meanwhile, Apple revealed that it expects its supply chain to the United States to make more than 19 billion chips this year only, a production scale that extends over several states and suppliers. This includes chips produced by TSMC in its Arizona factory, as well as American Globalwafers manufacturing wafers, and semiconductor components of Texas Instruments, which will install new tools in installations from UTAH and Texas.

Apple also appointed Globalfoundries as a manufacturer of its wireless load modules. Flea will be produced in New York, taking advantage of Globalfoundries as a foundry based in the United States which already provides inherited fleas for federal government contracts.

The initiative aims to create a “end -to -end” supply chain – a concept which means that each phase of the Apple Tamias manufacturing process, from raw materials to final assembly, can occur in the United States

Rare data and land centers

Beyond the semiconductors, Apple also extends its data center imprint through North Carolina, Iowa, Nevada and Oregon. The company initially announced $ 10 billion in investments provided in data centers in these states, a number which has since been exceeded.

The company has also reiterated its previous promise to invest $ 500 million in a mining company in rare land, part of a strategy to ensure that the vital raw materials used in batteries and devices of devices can come locally, reducing dependence on China and other foreign suppliers.

Commercial policy and pricing implications

The announcement comes in the middle of an increase in trade tensions, including new American prices on India – a Trump decision in response to increasing imports from Russian India oil. While Apple has moved a large part of its iPhone assembly to India in recent years to avoid prices on Chinese products, new import taxes focused on India, which increase rates to 25%, pose another layer of pressure on costs.

However, the Officials of the White House told CNBC that Apple should be “largely not affected” by India prices, thanks to existing exemptions and supply strategies.

However, the company has recognized that existing prices – in particular those with Chinese imports – will cost Apple about $ 1.1 billion this quarter. Apple also looks closely at the result of an investigation into article 232 which could impose even higher import taxes on semiconductors, which has an impact on its results.

This is not the first time that Apple has made investment announcements in the United States. In 2018, under pressure during Trump’s first term, the company has signed up to 350 billion US dollars of over five years. In 2021, he increased this figure to $ 430 billion.

But the last commitments far exceed these previous promises. The combined $ 600 billion now represent an average of $ 125 billion in American annual expenditure, which is doubled the $ 70 billion per year that Apple promised in 2018.

A large part of this investment has already materialized. The company has built data centers, funded from suppliers and launched a manufacturing fund of $ 10 billion, which supports American companies like Corning. Suppliers do not publicly disclose the share of their Apple revenues, but analysts say that the technology company is among the largest engines in the private sector of advanced manufacturing growth in the country.

Overview

Wednesday’s announcement strengthens Trump’s agenda to use executives and economic pressure to push multinationals to national reinvestment.

“There are a lot of factories and many plants that are under construction or soon we will start construction,” said Trump. “So I can’t tell you exactly when, but I want to have about a year.”

The Apple agreement is likely to serve as a flagship example of this action policy. With the technological manufacturing now prevented from geopolitics, prices and relegation of the supply chain, Apple’s massive engagement provides both political coverage and strategic reallow.