Money is power? Apple promises $500 billion in US investment in wake of tariff threats Trump tariffs risk spiking costs of both Apple's business and its products. Ashley Belanger Feb 24, 2025 11:16 am | 21 Credit: aerogondo | iStock / Getty Images Plus Credit: aerogondo | iStock / Getty Images Plus Story textSizeSmallStandardLargeWidth *StandardWideLinksStandardOrange* Subscribers only Learn moreOn Monday, Apple announced plans to invest more than $500 billion in the US over the next four years.This is the "largest-ever" spending commitment that Apple has made in the US, supporting "a wide range of initiatives" focused on artificial intelligence, chip manufacturing, advanced research and development, and worker training. About 20,000 jobs will be created over those four years, Apple said, "of which the vast majority will be focused on R&D, silicon engineering, software development, and AI and machine learning."Apple's plans include building a 250,000-square-foot server-manufacturing facility in Houstonwhich will open in 2026 and "play a key role in powering Apple Intelligence" and supporting AI cloud computing, Apple said. The tech giant will also "continue expanding data center capacity in North Carolina, Iowa, Oregon, Arizona, and Nevada," Apple's blog said.Perhaps most significant among investments is the plan to double Apple's US Advanced Manufacturing Fund (AMF). That fund largely promotes "advanced manufacturing and skills development," Apple said. But in spiking AMF investments from $5 to $10 billion, Apple also committed to spending several billion on advanced chips produced at an Arizona fab built by the Taiwan Semiconductor Manufacturing Company (TSMC).That plant is expected to help secure America's domestic supply of advanced chips, and Apple confirmed that "mass production of Apple chips" previously reliant on access to TSMC's Taiwan packaging facilities began last month in Arizona. In December, TSMC Arizona Chairman Rick Cassidy told CNBC that after moving past forecast delays, the Arizona fab is currently "right on par" with Taiwan fabs where CNBC noted "about 92 percent of the worlds most advanced chips are currently made." Apple's investments could help redirect some of TSMC's Taiwanese business toward the US."We are bullish on the future of American innovation, and were proud to build on our long-standing US investments with this $500 billion commitment to our countrys future," Tim Cook, Apples CEO, said in the blog. "From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, were thrilled to expand our support for American manufacturing. And well keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation."Although Apple's blog did not mention Donald Trump, the US president has taken credit for Apple's announcement, NBC News reported. According to Trump, Apple rushed to move forward with existing plans to invest in the US after Trump threatened tariffs on a wide range of imports that experts previously told Ars could have substantially taxed Apple's business."They dont want to be in the tariffs," Trump said last week after meeting with Cook.Trump also claimed that Cook confirmed that Apple "halted plans to build two facilities in Mexico," NBC News reported, but Apple has so far not confirmed that.It's unclear what Apple plans in Mexico Trump was alluding to. While Apple did not mention any Mexico plans, its partner Foxconn has a major presence there and has announced expansion plans.Instead, Apple's blog focused only on US plans, which also includes opening an Apple Manufacturing Academy in Detroit and "a new collaboration with UCLAs Center for Education of Microchip Designers (CEMiD) beginning this year." NBC News noted that all of Apple's announcements appeared to be an "acceleration of existing plans," rather than bold commitments in the face of Trump tariff threats that many analysts have forecast could risk spiking costs of Apple devices or hobbling Apple's growth.Ashley BelangerSenior Policy ReporterAshley BelangerSenior Policy Reporter Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience. 21 Comments