Apple has announced a $100 billion investment to expand its manufacturing and supply chain operations in the United States. This move comes as former President Donald Trump said he plans to impose a 100 percent tariff on imported chips. However, companies that build in the US will not be affected by the new tax.
This investment adds to Apple’s earlier pledge of $500 billion made earlier this year. That original commitment came after Apple lost billions due to previous tariffs under Trump’s trade policies. Now, Apple is looking to build more parts for its products—especially iPhones—within the US.
At a White House event, Trump praised Apple and made it clear that companies who build in America will not face new tariffs.
“If you’re building in the United States, or have made a clear promise to do so, you won’t be charged,” Trump said.
iPhones Still Won’t Be Fully Made in the US
Apple CEO Tim Cook joined Trump at the announcement and thanked him for his support. Cook said the company took Trump’s request for more US-based manufacturing seriously.
Still, Cook made it clear that Apple won’t be building full iPhones in the US anytime soon. Instead, the focus is on making key parts like chips, glass, and Face ID modules.
“We’re doing a lot of the semiconductors here, the glass here, the Face ID module here,” Cook said. “That’s a lot of content made in the US and used in devices around the world.”
Trump seemed satisfied with this step. “He’s not making this kind of investment anywhere else,” Trump said. “Apple is coming back to America.”
The American Manufacturing Program
Apple’s new investment will fund a program called the American Manufacturing Program. Its goal is to shift more of Apple’s supply chain to the United States.
The company plans to make more than 19 billion chips in 2025. These chips will be produced in 24 factories across 12 states. Apple’s suppliers—including Corning, Coherent, Texas Instruments, Applied Materials, GlobalWafers America, Samsung, and Broadcom—will all play key roles in the effort.
Cook said Apple wants to build an entire chip supply chain in the US. That means handling everything from design to packaging within the country.
More US-Made iPhone Parts
Apple is also expanding its partnership with Corning, which makes the glass used in iPhones and Apple Watches. Soon, every iPhone and Apple Watch sold globally will use glass made in Kentucky.
Cook presented Trump with a sample of this glass during the event. Apple is also strengthening ties with Coherent, which makes lasers used in Face ID.
Challenges of Building in the US
Trump has been urging tech companies to move manufacturing back to the US. However, experts say this is easier said than done. Labor costs in the US are higher. There’s also a shortage of skilled workers trained to handle complex electronics production.
Most of Apple’s suppliers are still based in Asia. That means even if parts are made in the US, many still need to be shipped overseas for final assembly. Cook said iPhones will continue to be assembled outside the US “for a while.”
Still, Apple is making progress by building more of its most important components in the US.
Pressure from Tariffs
Apple has already felt the impact of tariffs. Cook recently said the company expects to pay $1.1 billion in extra costs this quarter due to trade policies. Trump has warned both Apple and Samsung that more tariffs could be coming unless they build in the US.
Recently, Trump also raised tariffs on goods from India, where Apple assembles many of the iPhones sold in the US. However, smartphones remain exempt from the new tariffs. This is a key win for Apple.
As part of its earlier $500 billion investment, Apple plans to open a training academy in Detroit. It will also buy rare earth materials—used in electronics—from a US supplier, MP Materials.
A Tough Year for Apple
Apple’s announcement comes during a difficult year. The company recently delayed a major update to its Siri voice assistant. At the same time, it is under pressure to compete with Google and OpenAI in the race to lead artificial intelligence.
Despite the challenges, some experts believe Apple is in a strong position. Tim Cook’s close relationship with the Trump administration may help Apple stay ahead of future trade issues.
“Tim Cook is known as a supply chain expert,” said Ted Mortonson, a tech strategist at Baird. “He and his team are likely aware of what’s coming—before it happens.”
Other Tech Giants Are Investing Too
Apple is not the only tech company increasing its US presence. Texas Instruments announced a $60 billion chip investment in June. Taiwan’s TSMC pledged $100 billion in March. Nvidia also said it would build its AI supercomputers in the US.
As more tech firms shift production to the US, Apple’s $100 billion move shows it is serious about leading the way.
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