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Apple to Pump $100 Billion More Toward Manufacturing in US
CNETยท 2025-08-07 08:53
Core Viewpoint - Apple plans to invest an additional $100 billion over the next four years to enhance manufacturing in the US, bringing its total investment to $600 billion aimed at hiring more US workers and expanding manufacturing across 10 states [1][4]. Group 1: Investment and Manufacturing Plans - Apple will develop 100% of the cover glass for iPhone and Apple Watch products in Kentucky, partnering with Corning, with a commitment of $2.5 billion for this initiative [2]. - The company aims to create an end-to-end silicon supply chain in the US, increasing domestic chip design, manufacturing, and packaging [3]. - Apple plans to hire 20,000 US workers over the next four years, supporting 450,000 jobs with suppliers and partners across all 50 states [4]. Group 2: Response to Tariffs and Production Strategy - Apple is shifting its production strategy due to steep tariffs on imports from countries where it traditionally manufactures, such as China [6]. - The company has relocated some production from China to countries like India and Vietnam to mitigate tariff impacts and reduce reliance on Chinese supply chains [7]. - Apple is preparing for the launch of the iPhone 17 in September while trying to avoid price hikes on its products due to tariffs as high as 25% [7]. Group 3: Future Manufacturing Possibilities - During a press conference, Apple CEO Tim Cook indicated that while some components are made domestically and assembly can occur in the US, he did not commit to manufacturing an entire iPhone in the US [8]. - President Trump expressed optimism about the potential for an all-US-made iPhone in the future [9]. - Apple's announcement included partnerships with companies like Texas Instruments, Broadcom, and TSMC to enhance domestic chip development and manufacturing [9]. Group 4: New Facilities and Production Capabilities - Apple has opened a new factory in Houston for server production, which will begin mass production next year to support its Apple Intelligence initiatives [10].