Tuesday, 25 February 2025
26.8 C
Singapore
24 C
Thailand
21 C
Indonesia
26.4 C
Philippines

Apple commits US$500 billion to US manufacturing, including a new AI server facility in Houston

Apple is investing US$500 billion in US manufacturing and AI, including a new AI server facility in Houston, as part of a broader expansion effort.

Apple has announced a massive US$500 billion investment in the United States over the next four years. The tech giantโ€™s plan includes manufacturing, engineering, and education initiatives, strongly focusing on artificial intelligence (AI) and chip production. A key part of this investment is constructing a new AI server manufacturing facility in Houston, Texas.

The companyโ€™s commitment also involves doubling the value of its US Advanced Manufacturing Fund to US$10 billion, establishing a new academy in Michigan to train workers for advanced manufacturing, and expanding research and development. Appleโ€™s move aligns with broader efforts by the US government to encourage tech firms to strengthen their presence within the country, reducing reliance on foreign manufacturing hubs like China.

A push for domestic manufacturing and AI development

While Apple has long collaborated with American suppliers, operating 24 factories across 12 states, this announcement signals a more aggressive expansion. The company currently employs 164,000 people globally, though it has not specified how many of these roles are based in the US. However, it has pledged to hire an additional 20,000 employees within the next four years, though the distribution of these jobs remains unclear.

The US government has actively encouraged domestic investment to boost economic growth and reduce dependency on overseas production. One tactic has been the imposition of tariffs on imported goods, pressuring companies to manufacture locally. Appleโ€™s US$500 billion commitment follows a similar level of investment announced by tech giants SoftBank, Oracle, and OpenAI for their AI data centre project.

While Appleโ€™s investment will not replace its global supply chain, it is a strategic move to show its dedication to supporting the US industry. The company relies heavily on international manufacturing, but its expanded domestic efforts contribute substantially to the ongoing push for reshoring production.

AI at the heart of Appleโ€™s latest expansion

A significant portion of Appleโ€™s investment is directed towards AI development. The Houston facility will manufacture AI servers to support Apple Intelligence, the companyโ€™s in-house AI initiative. Apple also expands data centre capacities in North Carolina, Iowa, Oregon, Arizona, and Nevada to support its AI infrastructure.

It remains unclear what tax incentives Apple might receive for these investments. However, the company has emphasised its role as one of the largest US taxpayers, having contributed over US$75 billion in taxes over the past five years, including US$19 billion in 2024 alone.

Apple CEO Tim Cook highlighted the companyโ€™s commitment to American innovation: โ€œWe are bullish on the future of American innovation, and weโ€™re proud to build on our long-standing US investments with this US$500 billion commitment to our countryโ€™s future. From doubling our Advanced Manufacturing Fund to building advanced technology in Texas, weโ€™re thrilled to expand our support for American manufacturing. And weโ€™ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.โ€

One of the most ambitious parts of Appleโ€™s plan is the 250,000-square-foot AI server manufacturing facility in Houston. Construction is set to begin later this year, with completion expected in 2026. This project underscores Appleโ€™s belief that AI will play a major role in future products and services.

As Apple increases its AI-focused investments and expands its US presence, the move is expected to shape its long-term technological strategy while reinforcing the countryโ€™s position as a leader in innovation.

Hot this week

How SMBs can stay connected affordably and efficiently

Discover how SMBs can stay connected affordably with 5G solutions and managed services, ensuring seamless operations without high costs.

Hasselblad’s legacy in space photography meets OPPO Find N5: Is this the next frontier for mobile imaging?

OPPO and Hasselblad redefine mobile photography with the Find N5, blending cutting-edge AI with legendary imaging expertise. Is this the next frontier?

ATxEnterprise 2025 marks five years of driving enterprise technology, cybersecurity, and digital transformation

ATxEnterprise 2025 marks its fifth year, introducing new initiatives and exploring AI, cybersecurity, and digital transformation in enterprise technology.

Google may launch YouTube Premium Lite in more countries

Google may launch YouTube Premium Lite in the US, Australia, Germany, and Thailand, offering a cheaper plan with fewer ads. Pricing is yet to be confirmed.

SBF supports Budget 2025’s focus on long-term growth and cost relief

SBF welcomes Budget 2025โ€™s focus on business transformation, tax relief, and workforce support, reinforcing Singaporeโ€™s long-term economic strategy.

Mobile Legends: Bang Bang added to 2026 Asian Games as esports lineup expands

Mobile Legends: Bang Bang will be a medalled event at the 2026 Asian Games, joining a growing esports lineup at the international competition.

Meta AI expands to the Middle East and Africa with Arabic language support

Meta AI expands to MENA, adding Arabic support and new features on WhatsApp, Instagram, and Messenger, reaching millions of new users.

Hyundaiโ€™s NACS port faces a major issue at Tesla charging stations

The 2025 Hyundai Ioniq 5โ€™s new Tesla charging port faces real-world challenges due to its placement. Find out how this affects EV owners.

Appleโ€™s visionOS 2.4 update enhances Vision Pro with AI, Spatial Gallery, and more

Appleโ€™s visionOS 2.4 update for Vision Pro arrives in April, bringing Apple Intelligence, Spatial Gallery, a companion iPhone app, and improved Guest mode.

Related Articles