On Wednesday, President Donald Trump revealed that Apple plans to invest an additional $100 billion (approximately Rs. 8,77,315 crore) in the United States, a strategic decision that could help the company avoid potential tariffs on its iPhone products.
This latest commitment elevates Apple’s total investment in the US to $600 billion (about Rs. 52,63,952 crore) over the next four years. Earlier in the year, Apple had announced a plan to invest $500 billion and create 20,000 jobs nationwide within the same timeframe.
The focus of this commitment lies in expanding Apple’s supply chain and enhancing its advanced manufacturing capabilities in the US, even though it does not meet Trump’s request for Apple to manufacture iPhones domestically.
“Companies like Apple, they’re coming home. They’re all coming home,” Trump stated during a press briefing in the Oval Office, shortly after receiving a US-made souvenir from Apple CEO Tim Cook, which featured a 24-karat gold base.
Trump further remarked, “This is a significant step toward the ultimate goal of ensuring that iPhones sold in America are also made in America.”
When asked if Apple might eventually produce complete iPhones in the United States, Cook acknowledged that various components, including semiconductors, glass, and Face ID modules, are already manufactured domestically, but indicated that final assembly would likely remain overseas “for a while.”
While the investment announcement is noteworthy, analysts contend that these figures are consistent with Apple’s historical spending patterns and mirror commitments made during both the Biden and Trump administrations.
In May, Trump had previously threatened Apple with a 25% tariff on overseas-manufactured products, marking a stark departure from earlier policies that had exempted smartphones, computers, and other electronics from tariffs on Chinese imports. This shift cost Apple $800 million during the June quarter.
“Today marks a positive step for Apple, and it helps improve relations with Trump following what seems to have been a strained few months between the White House and Apple,” noted Daniel Ives, an analyst at Wedbush Securities.
“A Savvy Solution”
Apple has had a mixed history regarding its investment promises.
For example, during a tour in 2019 of a Texas facility with Trump, the site was presented as a new manufacturing location. However, that facility had actually been producing Apple computers since 2013 and production was later shifted to Thailand.
The majority of Apple’s production, which includes iPhones and iPads, remains in Asia, principally in China, although there have been some shifts to Vietnam, Thailand, and India in recent years.
Despite political pressures, many analysts believe that manufacturing iPhones in the US is impractical due to high labor costs and the complexities of the global supply chain.
“The announcement is a clever response to the president’s request for Apple to manufacture all iPhones in the US,” commented Nancy Tengler, CEO and CIO of Laffer Tengler Investments, a firm that holds Apple shares.
Collaborating with Apple on this recent investment initiative are companies such as specialty glass manufacturer Corning, semiconductor manufacturing equipment supplier Applied Materials, and chip producers Texas Instruments, GlobalFoundries, Broadcom, and Samsung.
Apple indicated that Samsung will provide chips from its Texas production facility for use in its products, including iPhones, while GlobalWafers will supply 300mm silicon wafers from its own Texas plant.
On Wednesday, Apple shares experienced a 5 percent increase. Moreover, shares of Corning climbed nearly 4 percent in after-hours trading, and Applied Materials saw a gain of almost 2 percent.
© Thomson Reuters 2025
