Apple Expected To Announce New $100B Investment For Domestic Manufacturing
Apple is expected to commit $100B toward domestic manufacturing, according to an announcement from the White House.
The investment, meant to reduce Apple’s reliance on foreign manufacturing, will enable the company to fabricate and assemble critical components domestically.
Apple previously committed to another $500B investment in U.S. manufacturing facilities, training programs and existing U.S. suppliers. Those real estate investments will be focused on Houston, Detroit, Arizona and Nevada.
A new 250K SF manufacturing facility for artificial intelligence servers will be built in Houston. Detroit is getting a manufacturing academy to train small manufacturers on integrating AI technology into production.
The company has also been on a buying spree lately, beefing up its real estate portfolio near its Silicon Valley headquarters. In its third major deal of the year, the tech giant dropped $365M on a four-building campus last month.
This followed a $165M investment in a three-building campus near the company’s Cupertino headquarters in June. That purchase doubled its footprint in Cupertino following the 2022 purchase of a building it had leased for 10 years.
Apple isn't the only major company committing to expanding domestic manufacturing. Automakers Tesla and Honda announced similar plans earlier this year as President Donald Trump's tariff announcements sent a wave of anxiety through the business world.
Tesla plans a 1M SF battery factory outside Houston, while Honda plans to move production of its Civic hybrid from Mexico.
Demand for manufacturing space surged this year and is up 354% since 2018. Driven by trade conflicts, industries across the board want to stabilize their supply chains with domestic production. It is the acceleration of a trend that began during the pandemic as supply chain disruptions threw firms' operations into chaos.
The trend continued in response to incentives included in President Joe Biden's CHIPS Act, as well as those included in the Inflation Reduction Act.
