Tech giant expands domestic investment to $600 billion over four years amid Trump's tariff threats on foreign-made electronics manufacturing.
Apple Inc. announced Wednesday a new $100 billion commitment to U.S. manufacturing. This brings its total domestic investment to $600 billion over four years. While Apple shows it made the decision freely, the real reason could be President Donald Trump’s continued pressure on tech companies to shift production from Asia to America through aggressive tariff policies.
The announcement, made during an Oval Office event with CEO Tim Cook and President Trump, comes as Apple faces mounting tariff-related costs ($800 million) in the current quarter, with projections of $1.1 billion next quarter, according to Cook's recent earnings call statements.
The American Manufacturing Program
At the heart of Apple's expanded commitment is the newly launched American Manufacturing Program (AMP), designed to incentivize global suppliers to manufacture critical components on U.S. soil. The initiative brings together major partners including Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom.
"Today, we're proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program," Cook said in Apple's official announcement. "This includes new and expanded work with 10 companies across America. They produce components that are used in Apple products sold all over the world, and we're grateful to the President for his support."
Building an End-to-End Silicon Supply Chain
A cornerstone of Apple's strategy involves creating a complete semiconductor supply chain within U.S. borders. The company expects to produce more than 19 billion chips for its products in 2025 across 24 factories in 12 states.
"I'm proud to say that Apple is leading the creation of an end-to-end silicon supply chain right here in America, from design to equipment to wafer production to fabrication to packaging," Cook stated during the announcement.
Key partnerships include:
- GlobalWafers America in Sherman, Texas, producing advanced 300mm wafers for the first time in the U.S.
- TSMC Arizona, already producing tens of millions of chips using advanced process technologies
- Texas Instruments expanding facilities in Utah and Texas for foundational semiconductors
- Samsung's Austin facility launching innovative chip technology never before used globally
- Amkor's Arizona facility for advanced chip packaging and testing
Kentucky Glass and Beyond
Perhaps the most visible commitment involves Corning's expansion in Harrodsburg, Kentucky. The expansion means that soon, every iPhone and Apple Watch sold around the world will be built with Kentucky-made cover glass. The partnership also includes plans for a new Apple-Corning Innovation Center in the state.
Additional expansions include a 250,000-square-foot server manufacturing facility in Houston set to begin mass production in 2026, supporting Apple Intelligence and Private Cloud Compute. Data center expansions are underway in North Carolina, Iowa, Nevada, and Oregon, while a new Manufacturing Academy opens in Detroit on August 19.
Political Context and Pressure
The announcement follows months of pressure from the Trump administration, which has threatened punitive tariffs on companies manufacturing abroad. In May, Trump warned of 25% tariffs on iPhones made outside the U.S., writing on Truth Social that he expected iPhones sold domestically to be "manufactured and built in the United States, not India, or anyplace else."
During Wednesday's event, Trump escalated his rhetoric, threatening 100% levies on semiconductors and chips made internationally, though he indicated companies "committed" to U.S. building would avoid such charges.
But despite the substantial investment, analysts caution that a full-scale shift of iPhone assembly to the U.S. remains unlikely due to high labor costs and the complexity of Apple's global supply chain. Manufacturing iPhones domestically would significantly increase production costs, potentially leading to higher retail prices.
As a result, Apple continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand, and India in recent years.
