Apple to invest another $100 billion into the US to avoid tariffs
Apple plans to invest an additional $100 billion in the US, the company announced on Wednesday. The investment follows President Donald's Trump's announcement yesterday that he would impose a 100 percent tariff on chip imports, with an exemption for any companies "building in the United States."
Also relevant is the White House's previously announced plans to raise tariffs on India by an additional 25 percent (bringing the total tariff to 50 percent) for purchasing oil from Russia. Apple relies heavily on manufacturers in India to create the iPhone, so adding to its already $500 billion investment in the US is likely a way to avoid being impacted by the tariffs.
"Today, we're proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program," Apple CEO Tim Cook shared in a statement. "This includes new and expanded work with 10 companies across America. They produce components that are used in Apple products sold all over the world, and we're grateful to the President for his support."
Apple is expanding our US commitment to $600 billion over the next four years. And our new American Manufacturing Program will bring even more jobs and advanced manufacturing to the US. pic.twitter.com/6KWkTGJN3O
- Tim Cook (@tim_cook) August 6, 2025
In February, Apple said its original $500 billion investment plan would go towards building Apple Intelligence servers in the US, and that the majority of the new jobs the funding would provide would be focused on R&D, silicon engineering, software development and AI and machine learning. As part of this additional investment, Apple says it's also deepening its relationship and investment in component makers working in the US, like Corning and Amkor.
Corning produces the glass for iPhones and Apple Watches, and the company says that "soon, every iPhone and Apple Watch sold around the world will be built with Kentucky-made cover glass." Apple is investing in Amkor to take advantage of the company's "advanced chip packaging and test facility in Arizona." Apple says its "leading the creation of an end-to-end silicon supply chain in the United States" through its investments.
In addition, Apple said it would be working with Samsung "to launch an innovative new technology for making chips, which has never been used before anywhere in the world." Those chips will reportedly be cutting-edge image sensors for iPhone cameras and be built in Texas, according to The Financial Times. Apple may be shifting at least part of its sensor purchases to Samsung from Sony due to tariffs - Samsung has chip plants in the US and Sony doesn't. Apple said that Texas Instruments, Broadcom and GlobalFoundries would expand component manufacturing in the US as well.
In a statement to Bloomberg before the announcement, a White House spokesperson suggested the new investment would "help reshore the production of critical components to protect America's economic and national security." The Trump administration has previously called for Apple to make the iPhone in the US, something CNN reports is difficult to downright impossible.
Apple's current strategy for dealing with Trump is similar to how it handled the President during his first term. In 2019, Apple CEO Time Cook and Trump "opened" a Mac Pro factory in Texas. The factory had been up-and-running since 2013, but the President was pleased by the optics of making a deal. Apple's partnership with Amkor was similarly announced years ago in 2023, but is being trotted out now because it fits with Apple's "American Manufacturing Program."
Apple is a trillion-dollar company that can afford to spend a few billion to avoid paying tariffs, but it also likely planned to increase its investment in the US anyway to keep up with competitors. It's entirely possible the company is just packaging its spending in a way that flatters the President.
Steve Dent contributed to this report.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-to-invest-another-100-billion-into-the-us-to-avoid-tariffs-210250020.html?src=rss