Apple's Massive $500 Billion Investment: 20,000 New R&D Jobs on the Horizon!

Apple is set to invest $500 billion in North America over the next four years, which includes the establishment of a massive factory in Texas focused on artificial intelligence servers. This ambitious plan is expected to create approximately 20,000 research and development jobs across the country.

The $500 billion investment encompasses various aspects, including purchases from US suppliers and the filming of TV shows and movies for its Apple TV+ service. While Apple has not disclosed how much of this figure will be allocated to its US supply chain, it includes significant contributions from companies like Corning, which manufactures glass for iPhones in Kentucky.

This announcement follows a meeting between Apple CEO Tim Cook and President Donald Trump. As Apple faces potential 10% tariffs on products assembled in China, the investment is viewed as a strategic move to bolster its US operations. Analyst Gil Luria noted that Apple has likely committed over $150 billion annually to the US economy, which could easily meet the new spending pledge in just a few years.

Previously, in 2018, Apple had announced a similar investment plan, promising $350 billion over five years. Trump expressed gratitude towards Apple for its commitment, emphasizing the company's confidence in his administration.

Although a majority of Apple’s consumer products are assembled overseas, many components, such as chips from Broadcom and Skyworks Solutions, are still produced in the US. Recently, Apple started mass production of its custom-designed chips at a factory in Arizona operated by Taiwan Semiconductor Manufacturing Co. (TSMC).

In collaboration with Foxconn, Apple will build a 250,000-square-foot facility in Houston for assembling servers that support its AI features. Currently, these servers are manufactured outside the US. Apple is also increasing its Advanced Manufacturing Fund from $5 billion to $10 billion, which will support advanced silicon production at TSMC’s Arizona factory.

Additionally, Apple plans to establish a manufacturing academy in Michigan, where engineers and local university staff will provide free courses to small and mid-sized manufacturing firms, focusing on project management and manufacturing process optimization.