Apple announces upcoming $500B investment in U.S.

The tech giant announced on Monday what it said was its largest-ever investment commitment, with plans to expand facilities and teams in several states over the next four years. Apple’s plans include a new 250,000-square-foot server manufacturing facility for Apple Intelligence—its artificial intelligence system—slated to open in Houston next year. The servers were previously made abroad, the company said. Apple also plans to open a manufacturing academy in Detroit that will offer free skills development courses to workers. Company engineers and experts from universities such as Michigan State will also provide consulting services for small- and medium-sized businesses via the academy. The announcement also said Apple plans to hire about 20,000 people to work in research and development, silicon engineering, and AI and machine learning.

Why is Apple increasing U.S. investment? President Donald Trump credited tariffs on Chinese and Mexican imports for the move, which Apple announced days after CEO Tim Cook met with Trump. The White House imposed 10 percent tariffs on Chinese imports and 25 percent tariffs on Mexican imports Feb. 1. The president said Cook wanted to avoid increased costs due to tariffs, the Associated Press reported.

Apple made a similar commitment to U.S. investment in 2018, during Trump’s first term, as the president mulled tariffs that could have affected iPhone imports. However, the company has already been shifting production away from China in recent years after prolonged trade tensions and COVID-19-related delays.