Final assembly of devices will continue to take place abroad
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US President Donald Trump. Image: Dept of Defense
Donald Trump announced on Wednesday that Apple will invest an additional $100 billion in the United States, bringing the total to $600 billion over the next four years. Earlier this year, the technology company had already announced $500 billion and a plan to hire 20,000 employees in the US.
The announcement focuses on expanding Apple’s supply chain and advanced manufacturing capacity in the US, but still does not meet Trump’s demand that Apple assemble iPhones entirely in the US.
Apple CEO Tim Cook noted that many components – such as semiconductors, glass, and Face ID modules – are already produced in the US, but that final assembly will, for now, continue to take place abroad.
Earlier in May, Trump had threatened Apple with a 25% import tariff on products made overseas, a sharp policy shift from previous exemptions for smartphones and computers. Those tariffs cost Apple $800 million in the quarter through June.
As part of the investment plan, Apple is working with American suppliers such as Corning, Applied Materials, and chipmakers like Texas Instruments, GlobalFoundries, Broadcom, and Samsung. Samsung supplies chips from its factories in Texas, while GlobalWafers delivers 300mm silicon wafers from a Texas plant.
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