FEBRUARY 24 – Apple Inc. has announced plans to establish a large-scale factory in Texas by 2026, focusing on building artificial intelligence (AI) servers. The initiative is part of Apple’s broader strategy to expand its presence in the U.S., creating approximately 20,000 new research and development jobs across the country.
This major investment aligns with Apple’s commitment to strengthening its supply chain and advancing technological innovation within the U.S. Over the next four years, Apple has pledged to invest $500 billion in the country. This spending will encompass various aspects, including partnerships with U.S.-based suppliers and funding content production for Apple TV+. However, the company has not specified how much of this amount is allocated to existing supplier agreements. Apple’s current supply chain includes several prominent American manufacturers, such as Corning, which produces glass components for iPhones in Kentucky.
Expansion Amid Trade Policy Changes
Apple’s latest move follows reports that CEO Tim Cook recently met with President Donald Trump. The company has historically navigated trade challenges, particularly regarding tariffs imposed on China-made products. Many Apple devices assembled in China could be affected by a 10% tariff introduced earlier this month. However, the company has previously managed to secure waivers on certain products during Trump’s first term.
In a similar initiative during Trump’s previous administration, Apple announced a $350 billion investment plan over five years. The latest announcement signifies an even greater financial commitment toward expanding U.S. operations.
Strengthening Domestic Manufacturing
Although the majority of Apple’s consumer products are assembled outside the U.S., several key components are still produced domestically. Companies such as Broadcom, Skyworks Solutions, and Qorvo manufacture essential parts for Apple devices within the country. Additionally, Apple recently began mass-producing its own chips in Arizona, utilizing a factory operated by Taiwan Semiconductor Manufacturing Company (TSMC).
The Arizona facility is a significant milestone in the company’s effort to localize semiconductor production. The move is also aligned with U.S. policies aimed at boosting domestic chip manufacturing, as seen in the CHIPS Act. The legislation, introduced with support from policymakers, is designed to reduce reliance on overseas semiconductor production and strengthen the American technology sector.
AI Server Production in Houston
Apple has confirmed that it will collaborate with Foxconn’s parent company, Hon Hai Precision Industry, to construct a 250,000-square-foot facility in Houston, Texas. This new factory will assemble AI servers designed to support Apple Intelligence, the company’s advanced AI-driven features. These capabilities enhance user experiences by streamlining tasks such as drafting emails and performing real-time language processing. Until now, the servers that power Apple Intelligence have been manufactured outside the U.S.
By shifting AI server production to Texas, Apple aims to bolster its technological independence while contributing to domestic job growth. The move is expected to enhance the company’s ability to develop and deploy AI infrastructure more efficiently.
Advanced Manufacturing Fund Expansion
Apple has also announced a substantial increase in its Advanced Manufacturing Fund, raising its value from $5 billion to $10 billion. Part of this expansion includes a significant investment in producing advanced silicon at TSMC’s Arizona plant. The company has not disclosed the specific terms of its agreement with TSMC, but previous allocations from the fund have supported Apple’s suppliers in building infrastructure necessary to meet Apple’s product demands.
In addition to boosting semiconductor production, Apple plans to launch a manufacturing academy in Michigan. This initiative will provide free training programs to small and mid-sized manufacturing firms. Apple engineers, in collaboration with university faculty, will offer expertise in areas such as project management and optimizing manufacturing processes. The academy is intended to equip U.S.-based manufacturers with the necessary skills to improve efficiency and stay competitive in the rapidly evolving tech industry.
A Strategic Shift in Apple’s U.S. Operations
Apple’s recent investments signal a clear commitment to strengthening its presence in the U.S. technology landscape. By expanding manufacturing facilities, creating research jobs, and supporting local suppliers, the company aims to reinforce its role as a leader in innovation while contributing to domestic economic growth.
The Texas AI server plant, along with the increased investment in chip production and workforce training, highlights Apple’s strategic shift toward enhancing its U.S. operations. These initiatives not only align with evolving trade policies but also position the company to meet future demands in artificial intelligence and semiconductor technology.
With these developments, Apple continues to shape the future of technology while fostering economic opportunities within the United States.