iPhone maker Apple announced on Monday that it plans to invest $500 billion in the United States over the next four years and hire 20,000 people in the process.
Apple’s domestic spending will also consist of building a new server manufacturing plant in Houston, Texas, doubling its Advanced Manufacturing Fund, and increasing its commitments to existing U.S. suppliers.
The new manufacturing facility, which is set to open in 2026, will produce servers capable of running the company’s newest AI offering, Apple Intelligence. The Advanced Manufacturing Fund, which helps local businesses, trains workers, and supports advancements in manufacturing technology, will go up from $10 billion to $5 billion. Additionally, Apple committed itself to producing advanced silicone in Arizona and creating 20,000 new jobs in the research and development division.
“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,” Apple CEO Tim Cook shared 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.”
Experts believe that the move is directly tied to recent tariff hikes on imported goods from China. Apple produces the majority of its products in China, and the changes in tariff policy are bound to increase its costs. By increasing its investments in the United States, the company is hoping to get an exemption and avoid raising the prices of its products while retaining the same profit margins.