U.S. Pledge Enhancement: Apple Commits an Additional $100 Billion
Apple Inc. has revealed plans to invest a total of $600 billion over the next four years in U.S. manufacturing and supply chain expansion. This includes a new $100 billion acceleration, announced in August 2022, as part of its American Manufacturing Program (AMP).
The program aims to bring more of Apple's supply chain and advanced manufacturing to the U.S., focusing on producing critical components domestically and incentivizing global companies to produce in America.
Key details of Apple’s U.S. investment and supply chain plans include:
- State Focus: Significant expansion and job creation across multiple states including Arizona, California, Iowa, Kentucky, Nevada, New York, North Carolina, Oregon, Texas, and Utah.
- Supply Chain Expansion: A $500 million multiyear commitment to buy American-made rare earth magnets from MP Materials’ flagship facility in Fort Worth, Texas. This deal also includes opening a new recycling facility for rare earth elements in Mountain Pass, California, and developing innovative magnet materials and technologies.
- Semiconductor Manufacturing: Apple has Apple Silicon production facilities in Phoenix, Arizona, part of the broader plan to grow domestic semiconductor manufacturing.
- Additional Investments:
- AI server facilities near Houston, Texas
- A new manufacturing academy in Detroit, Michigan
- A state-of-the-art new campus in California
Apple CEO Tim Cook highlighted that much of the U.S.-made components are exported globally, with roughly two-thirds of U.S.-made components shipped outside the U.S. Although under pressure to move iPhone assembly to the U.S., Cook confirmed there are no near-term plans for domestic iPhone assembly as it would significantly raise costs and require complex supply chain logistics.
The investment builds on plans announced in 2021, when Apple said it would invest $430 billion in the U.S. and add 20,000 jobs over the next five years.
In addition, a new production facility for iPhone screens will be built in Kentucky. President Trump reiterated that the U.S. is "going to be very rich" with companies like Apple returning to the country.
[1] Apple Inc. (2022). [Press Release: Apple announces $100 billion investment in US economy, expands American Manufacturing Program (AMP)]. Retrieved from https://www.apple.com/newsroom/2022/08/apple-announces-100-billion-investment-in-us-economy-expands-american-manufacturing-program-amp/
[2] Apple Inc. (2022). [Fact sheet: Apple's American Manufacturing Program]. Retrieved from https://www.apple.com/newsroom/2022/08/fact-sheet-apples-american-manufacturing-program/
[3] Apple Inc. (2022). [Press Release: Apple invests $500 million in American-made rare earth magnets]. Retrieved from https://www.apple.com/newsroom/2022/08/apple-invests-500-million-in-american-made-rare-earth-magnets/
- The American Manufacturing Program initiated by Apple Inc. focuses on not only expanding its manufacturing and supply chain within the U.S., but also incentivizing other businesses to do the same, using technology as a key driver.
- As part of its $600 billion investment plan, Apple is investing $500 million in American-made rare earth magnets, with a goal to develop innovative magnet materials and technologies, contributing to both the business and technology sectors.
