TLDR
- Apple announced an additional $100 billion investment in US manufacturing, bringing total commitment to $600 billion over four years
- CEO Tim Cook met with President Trump at the White House, presenting him with a custom Apple plaque made of Corning glass and gold
- Apple will produce all iPhone and Apple Watch cover glass at Corning’s Kentucky facility through new partnerships
- The company plans to hire 20,000 new US employees focused on R&D, silicon engineering, and AI development
- Apple stock jumped over 5% following the announcement as investors view this as reducing tariff risks
Apple CEO Tim Cook stood alongside President Trump at the White House on Wednesday to announce the company’s latest investment commitment. The tech giant revealed plans to spend an additional $100 billion on US manufacturing over the next four years.
This brings Apple’s total US investment to $600 billion. The announcement comes after months of pressure from the Trump administration regarding manufacturing locations.
Cook presented Trump with a custom plaque during the meeting. The gift featured Apple’s logo cut from Corning glass mounted on a 24-karat gold base made by a former Marine who works for Apple.
“I love that you’re doing this. I love that,” Trump said during the announcement. The president praised the investment as part of his broader manufacturing agenda.
New American Manufacturing Program Launches
Apple unveiled its American Manufacturing Program as part of the investment package. The initiative aims to incentivize global companies to build critical components within US borders.
Nine companies have signed on as initial partners. These include Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom.
The partnership with Corning represents one of the largest commitments. Apple will invest $2.5 billion to produce all iPhone and Apple Watch cover glass at Corning’s Harrodsburg, Kentucky facility.
“Soon, every iPhone and Apple Watch sold around the world will be built with Kentucky-made cover glass,” Apple stated. The companies will also establish an Apple-Corning Innovation Center at the plant.
Coherent will produce lasers for Apple’s Face ID technology under a multiyear agreement. This represents another key component being manufactured domestically.
Apple described creating an “end-to-end American silicon supply chain” through these partnerships. GlobalWafers will provide silicon wafers from Sherman, Texas for use in US chip factories.
Stock Reaction and Employment Plans
Apple shares climbed more than 5% during regular trading on Wednesday. The stock gained another 2.1% in after-hours trading following the announcement.
Corning stock rose 4.4% in extended trading after the partnership details emerged. Investors viewed the deals as reducing potential tariff exposure for Apple.
“The stock is up on the news likely a relief rally,” said Nancy Tengler, CEO of Laffer Tengler Investments. She noted Cook’s previous silence regarding administration criticism.
Apple plans to hire 20,000 new US employees as part of the investment. The majority of positions will focus on research and development, silicon engineering, software development, and artificial intelligence.
The hiring target was previously announced with Apple’s initial $500 billion US investment commitment in February. Cook had mentioned the job creation during the company’s July 31 earnings call.
The announcement follows Trump’s threats to impose tariffs on Apple products manufactured overseas. The administration previously threatened a 25% tariff on iPhones if production didn’t move to the US.
Apple has already shifted some iPhone production from China to India to avoid potential tariffs. Trump had expressed displeasure with this move, saying he “had a little problem” with Cook over the India decision.
D.A. Davidson analyst Gil Luria rates Apple as a Buy with a $250 price target. “Playing nice with the administration is not optional,” Luria told investors.
Most Apple products currently receive temporary exemptions from the heaviest tariffs under Section 232 investigations. However, Trump has indicated he will announce semiconductor chip tariff rates next week.
The timing of Apple’s announcement appears strategic given the ongoing trade policy discussions. Cook’s White House appearance marks his most public engagement with the administration on manufacturing policy.
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