Apple commits additional $100B to US manufacturing amid Trump's pressure
What's the story
Apple has pledged an additional $100 billion in US manufacturing investment, increasing its total commitment to $600 billion over the next four years. The announcement came during a White House event with President Donald Trump and CEO Tim Cook, who unveiled the new "American Manufacturing Program" to boost Apple's domestic production footprint and supply chain.
Manufacturing expansion
Expanded partnership with Corning and Samsung
As part of the new investment, Apple has announced an expanded partnership with Corning. The collaboration will see all of Apple's iPhone and Apple Watch cover glass being manufactured in Kentucky. The tech giant will also team up with Samsung at its Austin, Texas chip fab facility to "to launch an innovative new technology for making chips, which has never been used before anywhere in the world," according to Apple.
Future plans
Apple's new commitments may not satisfy Trump
Apple's Houston-based server factory, announced earlier this year, will begin mass production in 2026. The company is also expanding its data center in Maiden, North Carolina. Last month, Apple revealed plans to open a manufacturing academy in Michigan to train American companies in advanced manufacturing techniques. However, it remains unclear if these new commitments will satisfy Trump who believes that Apple can produce iPhones domestically.
Tariff concerns
Apple's manufacturing shift to Vietnam and India
In recent years, Apple has shifted some of its manufacturing from China to Vietnam and India to avoid tariffs and supply chain disruptions. However, Trump has criticized the company for not bringing the work back home and threatened a 25% tariff if it doesn't increase domestic production. Despite these challenges, CEO Cook had previously expressed pride in leading an end-to-end silicon supply chain in America.
Financial impact
Trump's tariffs could impact Apple's costs
Apple recently revealed that Trump's tariffs could add another $1.1 billion to its costs in the September quarter, on top of the $800 million it has already spent on these levies. The President has also introduced new "reciprocal" tariffs on products imported from several countries including Vietnam, where Macs, iPads, and Watches are made. On Wednesday, Trump announced an additional 25% increase in tariffs on India where Cook said most iPhones bound for the US are manufactured.