KEY TAKEAWAYS
- Apple announced plans to spend more than $500 billion in the U.S. over the next four years on a swath of investments, including hiring 20,000 new workers to make artificial intelligence servers in a new Texas-based factory.
- Apple said the 250,000-square foot Texas factory will support its Apple Intelligence AI model and will open in 2026.
- Apple said the $500 billion investment plan marks its largest-ever spend commitment, and includes creating a manufacturing academy and doubling the size of its US advanced manufacturing fund.
Apple (AAPL) announced on Monday plans to spend more than $500 billion in the U.S. over the next four years on a swath of investments, including hiring 20,000 new workers to make artificial intelligence servers in a new Texas-based factory.
Apple called the investment plan its “largest-ever spend committment.” It announced plans to open—with partners—a new factory in Houston, Texas, that will build AI servers previously made outside the U.S. and create a manufacturing academy in Michigan. The iPhone maker said the investment would also fund the acceleration of investments in AI and research & development into silicon engineering as well as double the size of its U.S. advanced manufacturing fund—which supports “innovation and high-skilled manufacturing” jobs in the country— to $10 billion.
The plan by the iPhone maker comes as U.S. President Donald Trump threatens tariffs on imports from Mexico and Canada, and hiked those on Chinese products to incentivise companies to produce goods domestically. Apple said it plans to hire around 20,000 people in the next four years for the Houston facility, most of whom will be focused on R&D, silicon engineering, software development, and AI and machine learning.
“From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing,” said Apple Chief Executive Officer (CEO) Tim Cook in a news release announcing the plan.
Texas Factory Set to Open in 2026
Apple said the 250,000-square foot Texas factory will play a “key role” in powering its Apple Intelligence AI model and will open in 2026.
As part of the manufacturing fund, meanwhile, Apple said it has made a “mulltibillion-dollar commitment” to make advanced chips in Taiwan Semiconductor Manufacturing Co.’s (TSM) Arizona plant.
The Michigan academy, meanwhile, will “train the next generation of US manufacturers,” Apple said.
In all, the investment plan, Apple said, would involve thousands of U.S.-based suppliers, as well as investing on hiring, infrastructure and spending on Apple TV+ productions in the U.S.
Apple’s U.S. plans come as it lagged its large-cap tech peers’ plans to spend big on AI. Alibaba Group (BABA) Monday announced plans to invest more than $52 billion in AI and the cloud over the next three years. In January, Microsoft (MSFT) said it would spend $80 billion on data centers in its current fiscal year.
Apple shares are falling around 0.51% in premarket trading and have gained more than 30% in the 12 months through Friday.
