WATCH: Apple pledges additional $100 billion to make iPhone parts in US

Trump also announced 100% tariffs on computer chips and semiconductors manufactured outside the US.


Apple will pledge an additional $100 billion to its initial $500 billion investment in the United States (US) over the next four years, US President Donald Trump said on Wednesday as he announced 100% tariffs on computer chips and semiconductors made outside the country.

The US president announced the increased commitment at the White House alongside the tech giant’s CEO Tim Cook, calling it “the largest investment Apple has made in America”.

“Apple will massively increase spending on its domestic supply chain,” Trump added, highlighting a new production facility for the glass used to make iPhone screens in Kentucky.

Apple investment

Apple’s investment comes after the tech giant already committed $500 billion to growing its domestic footprint earlier this year, as tariffs levied by Trump on US trading partners have cost Apple billions.

It builds on plans announced in 2021, when the company founded by the legendary Steve Jobs said it would invest $430 billion in the country and add 20 000 jobs over the next five years.

“This year alone, American manufacturers are on track to make 19 billion chips for Apple in 24 factories across 12 different states,” Cook said in the Oval Office.

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iPhones

Trump, who has pushed US companies to shift manufacturing home by slapping tariffs on trading partners, claimed that his administration was to thank for the investment, according to AFP.

“This is a significant step toward the ultimate goal of … ensuring that iPhones sold in the United States of America also are made in America,” Trump said.

Cook later clarified that, while many iPhone components will be manufactured in the United States, the complete assembly of iPhones will still be conducted overseas.

The iPhone is currently manufactured in China, but Apple has scaled up its production capacity in India over the last several years as a part of its ‘China Plus One’ strategy and has opted to dedicate most of its export capacity in India to supply the US market so far in 2025.

“If you look at the bulk of it, we’re doing a lot of the semiconductors here, we’re doing the glass here, we’re doing the Face ID module here … and we’re doing these for products sold elsewhere in the world,” Cook said.

100% tariffs

Trump’s announcement of 100% tariffs on computer chips and semiconductors made outside the US threatens to increase the cost of electronics made outside the country, which covers everything from TVs and video game consoles to kitchen appliances and cars.

No date has been set for when they might come into force

The new plan for tariffs on chips was “good news for companies like Apple”, Trump said.

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