Apple says it is increasing its investment in US manufacturing by another $100 billion over the next four years.
The company announced Wednesday in a broad statement leaked early by the White House that it would expand to $600 billion, pledging to hire more U.S. workers and expand some of its manufacturing in 10 states.
Apple CEO Tim Cook joined President Donald Trump at the White House on Wednesday to unveil its American manufacturing program, which includes plans to develop 100 percent of its cover glass for its iPhone and Apple Watch products in Kentucky in partnership with Corning. Apple plans to raise $2.5 billion for these product efforts alone.
“Every new iPhone and every Apple Watch sold worldwide will have cover glass made in Kentucky,” Cook said. The iPhone cover glass is already made at Corning’s Harrodsburg, Kentucky, manufacturing facility, although it’s unclear when 100 percent of iPhone glass will be made there.
Apple’s CEO said the company plans to build a U.S. silicon supply chain in the U.S., increasing chip design, manufacturing and packaging in the United States.
Read more: Trump phone website drops its ‘built in the USA’ claim
“American innovation is central to everything we do,” Cook said. “We’re growing and hiring here. We support 450,000 jobs with suppliers and partners in all 50 states.”
In the statement, Apple reiterated what it previously said in February: that it also plans to hire 20,000 U.S. employees over that four-year period.
Trump praised Apple and Cook in particular, calling him a “visionary” at times before questioning his athleticism.
The president repeated his claim that semiconductors imported from other countries would face 100% tariffs.
“I think the chip companies are all coming home,” Trump said. “If you build in the United States or commit to building without question, there will be no charge for it.”
Smartphone manufacturing in the US has other ties to the president. When the Trump Organization announced the launch of Trump Mobile in June, it promised a gold phone called the T1 that would be made entirely in the US. Those claims were later backtracked after it was revealed that the $499 phone appeared to be similar to one made overseas by T-Mobile.
Apple’s changing strategy
Apple changed the way it makes its products this year in response to steep tariffs on countries where it makes most of its flagship products, such as the iPhone. While Apple and other major tech companies don’t make smartphones in the U.S., some products that use components made overseas may be made in the U.S.
The company has shifted some production from China to countries including India and Vietnam to avoid tariffs and reduce its reliance on China’s vast manufacturing supply chains. Smartphone makers have faced tariffs as high as 25%, and Apple is trying to avoid raising the prices of its products. The company is set to launch the iPhone on September 17.
During the press conference, Cook was asked about the possibility that Apple could manufacture the entire iPhone in the U.S. Cook said that some components are made domestically and assembly could be done in the U.S., but stopped short of promising an entire device made in America.
Trump said Apple’s supply chains have been in place for some time.
“We can incentivize them,” he said, but suggested he was optimistic that an all-U.S.-made iPhone could happen “one day.”
Apple’s announcement included news of partnerships with companies including Texas Instruments, Broadcom, Applied Materials, TSMC, and others. Some of these efforts will include increased domestic chip development and manufacturing.
The company has also opened a new factory that makes servers for the company in Houston. It will be ready for mass production next year. Apple said the servers will help with its Apple Intelligence efforts.
