(VOR News) – Over the next four years, Apple intends to invest $500 billion in the US, the company announced Monday.
In addition to creating over 20,000 new R&D jobs nationwide, this investment will lead to the establishment of a sizable artificial intelligence server centre in Texas. The protest was sparked by rumours that Tim Cook, the CEO of Apple, met with Donald Trump last week.
Earlier this month, the White House threatened to put 10% tariffs on a range of Apple products made in China and imported into the United States, despite the fact that the iPhone manufacturer was exempt from China taxes during the first Trump administration.
The iPhone producer announced a multibillion-dollar investment in the US economy during the Trump presidency. Apple declared in 2018 that over the first five years of the Trump administration, its new and ongoing investments would boost the US economy by $350 billion.
Purchases from US vendors as well as US-produced films and TV shows for Apple TV+ are included in this additional $500 billion in anticipated spending.
It would not say how much of the total it had previously given to its US supplier base, which includes businesses like Corning, which makes iPhone glass in Kentucky.
During Truth Social, Trump thanked Apple and Cook.
Even while some of its components, like Broadcom, Skyworks Solutions, and Qorvo CPUs, are made in the US, the great majority of consumer goods are still made elsewhere, mostly in China.
Apple’s flagship product, the iPhone, may see a significant price increase in its home market if a 10% levy is implemented. At a Taiwan Semiconductor Manufacturing Co. (TSMC) factory in Arizona, Apple declared last month that it had started mass-producing processors of its own design.
The blog article announcing the investment claims that Apple is the primary client of this state-of-the-art facility, which employs more than 2,000 people to produce processors in the US.
The move of TSMC, which produces an estimated 90% of the most sophisticated semiconductors in the world, to Arizona and his contribution to the development of the Chips Act, which expanded semiconductor production in the US, were two of Trump’s most significant industrial policy initiatives during his first term.
Trump is reportedly updating the Chips Act, which was put into effect under the Biden administration and provided $30 billion in subsidies to companies looking to build semiconductor plants in the US.
Trump feels that big companies like TSMC should be given a “incentive” instead of monetary compensation, according to the Associated Press. “And the incentive is going to be they’re not going to want to pay 25, 50 or even 100% tax,” he stated to me.
Additionally, Apple announced Monday that it and Foxconn, formerly known as Hon Hai Precision Industry, would be working together to build a 250,000-square-foot factory in Houston. Apple Intelligence, a suite of artificial intelligence tools that help people with chores like email draughting, will be powered by computers built at the facility.
Datacenters will make use of these systems. The servers are now made outside of the US, according to an statement. Additionally, the company revealed plans to expand the capacity of its existing data centres in Oregon, Arizona, Nevada, Iowa, and North Carolina.
The Advanced Manufacturing Fund is expected to grow from $5 billion to $10 billion, according to Apple. A “multibillion-dollar commitment from Apple to produce advanced silicon” at TSMC’s Arizona facility is part of the expansion.
Apple has previously used the fund to help partners build the infrastructure needed to supply Apple goods and services, even if the details of its agreement with TSMC were not made public.
The Trump administration has approved Intel’s purchase of TSMC’s chip manufacturing division, the New York Times reports. This trade has generated a lot of conjecture. Most of Intel’s chips are still made in Taiwan, where TSMC was once a major rival.
Apple plans to establish a manufacturing academy in Michigan, where its engineers will work with instructors from nearby universities to provide small and medium-sized businesses with free courses on project management and manufacturing process optimisation.
SOURCE: TG
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