Apple to invest $500B in U.S. manufacturing

Published
February 25, 2025 - 03:00pm
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Apple Inc. plans to spend more than $500 billion in the U.S. over the next four years, according to an Apple press release dated Feb. 24.

The company reported expansion plans for its teams and facilities in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina and Washington. Apple’s investment in the future of U.S. manufacturing includes plans for building a new factory in Texas, doubling its investment in its  U.S. Advanced Manufacturing Fund, creating an academy in Michigan to train the next generation of U.S. manufacturers, and accelerating investments in AI and silicon engineering.

“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,” said Tim Cook, Apple’s CEO. “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.”

The $500 billion commitment includes Apple’s work with thousands of suppliers across all 50 states, direct employment, Apple Intelligence infrastructure and data centers, corporate facilities, and Apple TV+ productions in 20 states. Apple remains one of the largest U.S. taxpayers, having paid more than $75 billion in U.S. taxes over the past five years, including $19 billion in 2024 alone.

Apple reportedly supports more than 2.9 million jobs across the country through direct employment, work with U.S.-based suppliers and manufacturers, and developer jobs in the iOS app economy.

Opening a New Manufacturing Facility in Houston

As part of its new U.S. investments, Apple will work with manufacturing partners to begin production of servers in Houston later this year. A 250,000-square-foot server manufacturing facility, slated to open in 2026, is expected to create thousands of jobs, according to the news release.

Previously manufactured outside the U.S., the servers that will soon be assembled in Houston play a key role in powering Apple Intelligence. The servers are the foundation of Private Cloud Compute, a cloud intelligence system designed specifically for private AI processing.

The energy efficient servers are said to be designed to reduce the energy demands of Apple data centers, which the company said already run on 100% renewable energy. As Apple brings Apple Intelligence to customers across the U.S., it also plans to continue expanding data center capacity in North Carolina, Iowa, Oregon, Arizona and Nevada.

Doubling Apple’s U.S. Advanced Manufacturing Fund

The U.S. Advanced Manufacturing Fund, which is up to $10 billion with the new Apple investment, is focused on promoting advanced manufacturing and skills development throughout the country. Apple created the fund in 2017 to support world-class innovation and high-skilled manufacturing jobs across America.

The fund’s expansion includes a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC’s Fab 21 facility in Arizona. Apple is the largest customer at this state-of-the-art facility, which employs more than 2,000 workers to manufacture the chips in the United States. Mass production of Apple chips began last month.

Silicon used by Apple is designed to bring Apple users incredible features, performance, and power efficiency across their devices. Apple’s suppliers already manufacture silicon in 24 factories across 12 states, including Arizona, Colorado, Oregon and Utah. The company’s investments in the sector help create thousands of high-paying jobs across the country 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 have helped build local businesses, train workers and create a wide range of innovative manufacturing processes and materials for Apple products.

Growing R&D Investments Across the U.S.

In the past five years, Apple said it has nearly doubled its U.S.-based advanced R&D spend. Over the next four years, Apple plans to hire about 20,000 people, the vast majority of whom will focus on R&D, silicon engineering, software development and AI/machine learning. The expanded commitment includes investment in Apple’s R&D hubs across the country.

New Manufacturing Academy in Detroit

To help companies transition to advanced manufacturing, Apple will open the Apple Manufacturing Academy in Detroit. Apple engineers, along with experts from top universities such as Michigan State, will consult with small- and medium-sized businesses on implementing AI and smart manufacturing techniques. The academy will also offer free in-person and online courses, with a skills development curriculum that teaches workers vital skills like project management and manufacturing process optimization. The courses will help drive productivity, efficiency and quality in companies’ supply chains.

Related Glossary Terms

  • centers

    centers

    Cone-shaped pins that support a workpiece by one or two ends during machining. The centers fit into holes drilled in the workpiece ends. Centers that turn with the workpiece are called “live” centers; those that do not are called “dead” centers.

Author

CTE magazine staff
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News items authored by Cutting Tool Engineering have been written or edited by the editors of Cutting Tool Engineering magazine. The reports represent material submitted to CTE by outside authors, and edited by CTE editors for style and accuracy.