Free Trial

Trump announces Apple investing another $100 billion in US manufacturing

An Apple store employee stands inside the store in New York on Feb. 5, 2021. (AP Photo/Mark Lennihan, File )

Key Points

  • President Donald Trump will announce Apple's commitment to invest an additional $100 billion in the U.S., raising their total investment to $600 billion over four years.
  • The investment aims to enhance the manufacturing industry in the U.S. and reshore critical component production for national security.
  • Trump has criticized Apple and its CEO, Tim Cook, for shifting production efforts to India, linked to his administration's trade policies.
  • The announcement aligns with Trump’s broader strategy as he imposes a 25% tariff on Indian goods, further intensifying trade tensions.
  • Are You Missing Key Market Insights? Try 5 Weeks of All Access for Only $5 Today. Claim Your Limited-Time Discount.

WASHINGTON (AP) — Apple CEO Tim Cook joined President Donald Trump at the White House on Wednesday to announce a commitment by the tech company to increase its investment in U.S. manufacturing by an additional $100 billion over the next four years.

"This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America," Trump said at the press conference. “Today’s announcement is one of the largest commitments in what has become among the greatest investment booms in our nation’s history."

As part of the Apple announcement, the investments will be about bringing more of its supply chain and advanced manufacturing to the United States as part of an initiative called the American Manufacturing Program, but it is not a full commitment to build its popular iPhone device domestically.

“This includes new and expanded work with 10 companies across America. They produce components — semiconductor chips included — that are used in Apple products sold all over the world, and we’re grateful to the President for his support,” Cook said in a statement announcing the investment.

The new manufacturing partners include Corning, Coherent, Applied Materials, Texas Instruments and Broadcom among others.

Apple had previously said it intended to invest $500 billion domestically, a figure it will now increase to $600 billion. Trump in recent months has criticized the tech company and Cook for efforts to shift iPhone production to India to avoid the tariffs his Republican administration had planned for China.

While in Qatar earlier this year, Trump said there was “a little problem” with the Cupertino, California, company and recalled a conversation with Cook in which he said he told the CEO, “I don’t want you building in India.”

India has incurred Trump’s wrath, as the president signed an order Wednesday to put an additional 25% tariff on the world’s most populous country for its use of Russian oil. The new import taxes to be imposed in 21 days could put the combined tariffs on Indian goods at 50%.

Apple’s new pledge comes just a few weeks after it forged a $500 million deal with MP Materials, which runs the only rare earths producer in the country. That agreement will enable MP Materials to expand a factory in Texas to use recycled materials to produce magnets that make iPhones vibrate.

Speaking on a recent investors call, Cook emphasized that “there’s a load of different things done in the United States.” As examples, he cited some of the iPhone components made in the U.S. such as the device’s glass display and module for identifying people’s faces and then indicated the company was gearing to expand its productions of other components in its home country.

“We’re doing more in this country, and that’s on top of having roughly 19 billion chips coming out of the US now, and we will do more,” Cook told analysts last week, without elaborating.

News of Apple’s latest investment in the U.S. caused the company’s stock price to surge by 5% in Wednesday’s midday trading. That gain reflects investors’ relief that Cook “is extending an olive branch” to the Trump administration, said Nancy Tengler, CEO of money manager Laffer Tengler Investments, which owns Apple stock.

Despite Wednesday’s upturn, Apple’s shares are still down by 15% this year, a reversal of fortune that has also been driven by the company’s botched start in the pivotal field of artificial intelligence.

—-

AP Technology Writers Michael Liedtke and Shawn Chen contributed to this report.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The Next 7 Blockbuster Stocks for Growth Investors Cover

Wondering what the next stocks will be that hit it big, with solid fundamentals? Enter your email address to see which stocks MarketBeat analysts could become the next blockbuster growth stocks.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

3 Overlooked AI Stocks That Chipmakers Can’t Live Without
Palantir & AMD Earnings: Massive Options Setups Ahead
3 Value Plays Set to Explode

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines