Apple to invest $500 billion in U.S. manufacturing, including new TSMC plant in Phoenix
PHOENIX (AZFamily/AP) — Apple announced on Monday that it plans to invest more than $500 billion in the United States over the next four years, including producing advanced silicon chips at the new TSMC FAB plant in Phoenix, Arizona.
The move comes just days after President Donald Trump said Apple CEO Tim Cook promised him that the tech giant’s manufacturing would shift from Mexico to the U.S. Trump noted the company was doing so to avoid paying tariffs.
That pledge, and Monday’s investment commitment, came as Trump continues to threaten to impose tariffs that could drive up the cost of iPhones made in China.
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” Cook said in a company blog post.
Apple outlined several concrete moves in its announcement, the most significant of which is the construction of a new factory in Houston — slated to open in 2026 — that will produce servers to power Apple Intelligence, its suite of AI features. The company claims this factory will create “thousands of jobs.”
The announcement is similar to one Apple made in early 2018 — during the first Trump administration — that promised to create 20,000 new jobs as part of a $350 billion spend in the U.S. Trump was also mulling a tariff then that could have affected iPhones at the time, but he didn’t end up targeting those devices during his first administration.
TSMC in Arizona
The investment announcement also doubles Apple’s U.S. manufacturing fund, which includes silicon chip production at TSMC in Arizona.
Apple says it is TSMC’s largest customer and currently employs 2,000 workers to manufacture chips in the U.S. Apple began producing chips in January.
Apple uses TSMC’s silicon chips to enhance the power and performance of its devices. It manufactures silicon chips in 12 states, including Arizona, Colorado, Oregon, and Utah.
In November, President Biden finalized a deal to invest $6 million in TSMC Arizona through the CHIPS Act.
TSMC plans to invest $65 billion to build three semiconductor fabs in north Phoenix, the largest investment in Arizona history.
When all three fabs are operating by the end of the decade, the project is expected to create 6,000 permanent jobs and more than 20,000 temporary construction jobs.
The company also pledged to offset 100% of its carbon emissions, establish a worker safety committee, and invest millions into workforce development and K-12 STEM programs.
The Associated Press contributed to this report.
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