Washington: Apple is set to escalate its investment in the United States by an additional $100 billion, President Donald Trump revealed during a White House event with Apple's CEO, Tim Cook. This commitment increases Apple's total US investment pledge to $600 billion over the next four years, marking it as the largest investment Apple has made in the country.
According to Bangladesh Sangbad Sangstha, the announcement builds on Apple's earlier plans, which included a $500 billion investment and the creation of 20,000 jobs, as shared in February. Trump has been quick to associate these investments with his administration's policies, emphasizing a new glass production facility for iPhone screens in Kentucky as part of the expansion.
The initiative aligns with Apple's 2021 announcement of a $430 billion investment and the addition of 20,000 jobs over five years. Tim Cook highlighted that American manufacturers are on track to produce 19 billion chips for Apple in 24 factories across 12 states this year.
Trump has advocated for US-based manufacturing by imposing tariffs on foreign trade partners. He expressed that the investment is a stride towards localizing iPhone production, although Cook clarified that complete assembly will still occur overseas. Cook also noted that several components, such as semiconductors and Face ID modules, are being manufactured in the US for global use.
Trump has also proposed a 100 percent tariff on imported semiconductors. However, Taiwanese company TSMC, a major chip supplier for Apple, would be exempt due to its US-based factories. Trump indicated that new tariffs on pharmaceuticals and semiconductors might be announced soon.
The President stressed that Apple's investment will contribute to semiconductor development and manufacturing across Texas, Utah, Arizona, and New York. He reassured tech companies that there would be no tariffs if they manufacture in the US.
Apple's financial performance remains strong, reporting a quarterly profit of $23.4 billion in July, despite facing increased costs from existing tariffs. These tariffs are absorbed by companies importing goods into the US, impacting Apple's products manufactured abroad.