Tim Cook successfully persuaded Donald Trump to postpone the implementation of the made-in-USA iPhone requirement, temporarily.
Apple, the tech giant, has announced a significant shift in its manufacturing strategy, committing $600 billion over four years to expand domestic production and supply chains for its products. This ambitious plan, known as the American Manufacturing Program (AMP), aims to increase supply chain resilience, create American jobs, and enhance innovation capabilities within the U.S.
The AMP partners with American suppliers such as Corning, Coherent, GlobalWafers America, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom. One of the key partnerships involves Corning, where a major expansion in Harrodsburg, Kentucky, will bring the world's largest, most advanced smartphone glass production line to the U.S., ensuring that all iPhones and Apple Watches worldwide will use Kentucky-made cover glass.
In Sherman, Texas, Apple partners with Coherent to produce VCSEL lasers critical for features like Face ID on iPhones and iPads. GlobalWafers America in Sherman is also producing advanced silicon wafers for use in U.S.-based semiconductor fabs that supply Apple products.
Apple has also established a new multiyear deal to buy American-made rare earth magnets from MP Materials in Fort Worth, Texas, supporting the expansion of magnets used globally in Apple devices and building a rare earth recycling facility in Mountain Pass, California.
The strategy extends beyond direct manufacturing. Apple plans to directly hire 20,000 people in the U.S., with most jobs focused on research and development, silicon engineering, AI, machine learning, and software development. This move will join more than 450,000 supplier and partner jobs Apple already supports across all 50 states.
The announcement has been well-received, with Apple stock rising 5% on Wednesday and another 3% on Thursday. However, analysts suggest that the new approach is "the cost of doing business." The newly announced spending is not expected to be material to Apple's profitability.
Tim Cook, Apple's CEO, appeared at the White House to announce the plans, but did not announce the production of made-in-USA iPhones. Instead, the centerpiece of the announcement was the American Manufacturing Program, designed to incentivize other companies to make parts for computers in the U.S.
This commitment builds upon Apple's earlier pledges during Trump's first administration in 2018, when the company committed about $70 billion per year. In February, the company committed to $125 billion per year. Wednesday's announcement brings that figure to $150 billion annually.
Apple also plans to partner with Samsung to launch an innovative new technology for making chips, and to invest in and become a customer at an Arizona Amkor facility. The company will expand existing data centers for artificial intelligence in North Carolina, Iowa, Nevada, and Oregon.
Some of Apple's most valuable parts, such as glass and facial recognition sensors, are already made by U.S. companies that Apple has worked with for years. Final assembly of iPhones is only a small, yet critical, part of production.
The move comes amidst pressure from President Donald Trump for Apple to manufacture iPhones in the U.S. Apple has not yet announced plans for domestic iPhone production, but the AMP is a significant step towards localizing critical manufacturing and supply chain elements for its products.
- The American Manufacturing Program (AMP), a strategic partnership involving companies like Corning, Coherent, GlobalWafers America, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom, aims to increase resilience, create American jobs, and enhance innovation capabilities within the U.S.
- Apple plans to invest in and become a customer at an Arizona Amkor facility, signifying a partnership with Samsung for launching an innovative technology for chip-making.
- One of the key partnerships under the AMP involves Corning, where a major expansion in Harrodsburg, Kentucky, will generate the world's largest, most advanced smartphone glass production line, supplying cover glass for iPhones and Apple Watches worldwide.
- The strategy also includes a significant commitment towards research and development, with Apple planning to directly hire 20,000 people in the U.S., focusing on areas such as AI, machine learning, and software development.
- Tim Cook, Apple's CEO, made an announcement at the White House about the American Manufacturing Program, receiving a positive response from investors, as Apple stock rose after the announcement. Despite the increased spending, analysts suggest that the new approach is the "cost of doing business" and not expected to significantly impact Apple's profitability.
