Apple pledges $600B for US manufacturing, avoiding Trump’s 100% semiconductor import tariff

Apple Inc. on Wednesday announced it will boost its original $500 billion investment pledge by another $100 billion to bring more manufacturing back to America – a move that will allow Apple to avoid Trump’s new 100% semiconductor import tariff.

“Apple is announcing that it will invest $600 billion in the United States over the next four years, US President Donald Trump said, reiterating the letter “B for billions.”

Making the announcement from the Oval Office, Trump called it “the largest investment Apple has ever made in America, and anywhere else.”

The move is expected to add about 20,000 research and development jobs nationwide. The President described the initiative as “coming home” to America, boasting that the "new manufacturing program will bring factories and assembly lines across the country, roaring to life."

🚨 Apple to invest $600 BILLION in the United States, the largest investment @Apple has ever made in our country. 🇺🇸 pic.twitter.com/PuC7fxBIyX

undefined The White House (@WhiteHouse) August 6, 2025

"Today’s announcement is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America’s economic and national security," White House spokeswoman Taylor Rogers said.

Apple introduces American Manufacturing Program

In February, Apple said it would spend $500 billion to cover an array of US investment spending initiatives, including a giant AI server factory in Texas, a vow to purchase from US suppliers, and a commitment to film all Apple TV+ television shows and movies in the US.

“Apple is expanding our US commitment to $600 billion over the next four years. And our new American Manufacturing Program will bring even more jobs and advanced manufacturing to the US,” Apple CEO Tim Cook posted on X.

Presenting the information visually to reporters, Apple said manufacturing would take place at 79 US factories, creating an end-to-end silicon supply chain in America.

Cook said the program will provide a total of 450,000 jobs, counting Apple suppliers and partners, with Apple team members and facilities in all 50 states.

Apple also revealed on Wednesday that the Texas plant would be supplying chips for Apple devices produced by Samsung Electronics.

"This facility will supply chips that optimize power and performance of Apple products, including iPhone devices," the tech company stated.

Furthermore, the company said it will use American-made rare earth magnets from MP Materials, adding, "Every iPhone and Apple Watch sold worldwide will contain cover glass made at Corning in Kentucky."

New 100% tariff on semiconductor imports

All part of Trump’s long-term trade agenda to entice companies to bring manufacturing back to the United States, the president also announced on Wednesday that he would impose an aggressive 100% tariff on any semiconductor chip imported into the country.

Trump said the new tariff rate would apply to "all chips and semiconductors coming into the United States," but not apply to companies that have committed to manufacturing here in the US – which now includes Apple.

"So, 100% tariff on all chips and semiconductors coming into the United States. But if you've made a commitment to build [in the US], or if you're in the process of building, as many are, there is no tariff," Trump said.

Apple is expanding our US commitment to $600 billion over the next four years. And our new American Manufacturing Program will bring even more jobs and advanced manufacturing to the US. pic.twitter.com/6KWkTGJN3O

undefined Tim Cook (@tim_cook) August 6, 2025

Trump's tariffs cost Apple $800 million in the June quarter and spurred some customers to buy iPhones in late spring this year, according to Reuters.

The media outlet said that Apple has been shifting production of products bound for the US, sourcing iPhones from India and other products such as Macs and Apple Watches from Vietnam.

Nancy Tengler, CEO and CIO of Laffer Tengler Investments, an Apple shareholder, told Reuters the increased investment is a "savvy solution to the president's demand that Apple manufacture all iPhones in the US.

"If, for some reason, you say you're building and you don't build, then we go back and we add it up, it accumulates, and we charge you at a later date, you have to pay, and that's a guarantee," Trump said.

During the last year of the Biden administration, all five leading-edge semiconductor firms – Intel, TSMC, Samsung, Micron, and SK Hynix –agreed to locate chip factories in the US as part of a $52 billion US Commerce Department manufacturing and research subsidy program.

In 2024, the Commerce Department said just over 10% of the world’s semiconductor chips were produced in the US, down from about 40% in 1990, the New York Times said.