Apple (AAPL.O), opens new tab said on Monday it would spend $500 billion in U.S. investments in the next four years that will include a giant factory in Texas for artificial intelligence servers and add about 20,000 research and development jobs across the country in that time.
That $500 billion in expected spending includes everything from purchases from U.S. suppliers to U.S. filming of television shows and movies for its Apple TV+ service. The company declined to say how much of the figure it was already planning to spend with its U.S. supply base, which includes firms such as Corning (GLW.N), opens new tab that makes glass for iPhones in Kentucky.
The move comes after media reports that Apple CEO Tim Cook met President Donald Trump last week. Many of Apple’s products that are assembled in China could face 10% tariffs imposed by Trump earlier this month, though the iPhone maker had secured some waivers from China tariffs during the first Trump administration.
“This pledge represents a political gesture towards the Trump administration,” said Gil Luria, analyst at D.A. Davidson, who estimated Apple has already committed to spend more than $150 billion per year in the United States, including cost of goods sold and capital expenditure.
“Even without growing that spend very much, they would only need 3 to 4 years to meet their obligation.”
Apple made a similar announcement about its U.S. spending plans in 2018, during the first Trump administration, when it said its new and ongoing investments would contribute $350 billion to the U.S. economy over five years.
The company’s shares were up 1.2%.
Trump, in a Truth Social post, thanked Apple and Cook, saying the move reflected the company’s faith in his administration.
Most of Apple’s consumer products are assembled outside the U.S., though many of Apple components are still made there, including chips from Broadcom (AVGO.O), opens new tab, Skyworks Solutions (SWKS.O), opens new tab and Qorvo (QRVO.O), opens new tab.
Apple said it last month started mass producing chips of its own design at an Arizona factory owned by Taiwan Semiconductor Manufacturing Co (2330.TW)
