Apple is investing another 100 billion in domestic production and supply chain

Apple has announced that it will invest a further $ 100 billion in domestic production and supply chain within the next four years. The group thus increases the investment program on $ 600 billion in February of this year. Users are ten American suppliers such as the glass manufacturer Corning. Apple’s declaration of intent is apparently due to the pressure of Donald Trump, because the US President plans higher tariffs for importing chips and semiconductors. There are only exceptions for companies that produce in the USA.

Almost six months ago, the iPhone group said that Apple wanted to invest $ 500 billion in the United States. This is to create 20,000 new jobs in the country in the next four years. However, the investments were not associated with iPhone factories that Trump wants in the United States. Some investments have been loud in recent years, and other projects are extensions of existing institutions. The plan of a server production system in the US state of Texas was new with thousands of new jobs, which is scheduled to start operating in 2026.

American Manufacturing Program with 10 partners

The Now announced Stocking this investment program with the new “American Manufacturing Program” (AMP) gives a similar impression, so that it is unclear what is created specifically and what is only expanded. Apple emphasizes the close cooperation with suppliers such as corning, coherent, globalwafers America (GWA), Applied Materials, Texas Instruments (Ti), Samsung, Globalfoundries, amkor, and Broadcom. These will be the first AMP partners. In addition, Apple supports domestic production by buying US magnets worth half a billion dollars of MP materials. The group announced this about three weeks ago.

Apple particularly raises the $ 2.5 billion Investment in corning emphasis that is part of this 600 billion program. Corning already delivered the screen glass at the first iPhone in 2007 and, due to the new Apple investments, will be able to expand the workforce of a factory in the US state of Kentucky by 50 percent. In the future, all iPhones and Apple Watches should be equipped with glass produced in the USA for the first time, not just the units sold in North America.

These investments strengthen the supply chain, especially within the United States, but to a domestic iPhone production that Trump emphasizes from time to time, has not yet been known to Apple. At the moment, the iPhones sold in the United States are mainly manufactured in India, said company boss Tim Cook recently, while MacBooks, iPads and Apple Watches for the US market According to Bloomberg be produced in Vietnam.

iPhone production and tariffs

“Of course we try to optimize our supply chain,” said Cook. “And ultimately we will do more in the United States.” However, the Apple boss evades concrete questions about the relocation of iPhone production to the United States. Trump has apparently also recognized that it is difficult to simply move the mass production carried out by hundreds of thousands of employees in India and China.

“I don’t know when the time comes, but there are many factories and facilities that are either under construction or will soon start building,” said Trump yesterday According to NBC News. “So I can’t tell you exactly when, but I want to be there in about a year or two, because I think we will experience an explosion.”

From Thursday, the United States will raise some new country -specific tariffs. This also affects India after they recently bought Russian oil. Imports from India have so far been decorated with 25 percent, but today Trump increases by a further 25 percent. So far, the penalty effect was still small and has affected the Apple numbers less than feared. Most recently, it was $ 800 million additional costs instead of $ 900 million, but it should get worse in the third quarter: a whopping $ 1.1 billion are planned for customs and trading effects.