Economy

Apple bets big on U.S. production

$100B investment to dodge Trump’s chip tariffs

2 Min.

08.08.2025

 Apple CEO Tim Cook, President Donald Trump.

President Donald Trump is considering imposing tariffs as high as 100 percent on imported chips and semiconductors – a move that could send electronics prices soaring in the U.S. But for tech giants like Apple, Trump is offering a way out: invest in America, and avoid the tariffs. Apple CEO Tim Cook is seizing the opportunity, announcing massive new investments in U.S. manufacturing.

During a joint appearance with Trump, Cook signaled Apple’s commitment to the president’s proposal, the Tagesschau reports on its online platform. The tech giant plans to invest an additional $100 billion over the next four years to boost domestic production of critical components. Partnering with firms like Texas Instruments in Texas and Amcor in Arizona, Apple aims to strengthen its U.S.-based supply chain for semiconductors and other key parts.

This builds on Apple’s earlier pledge of $500 billion in U.S. investments, with a significant portion going to long-time suppliers like Corning. Soon, every iPhone and Apple Watch worldwide will feature Corning glass made in Kentucky – a symbolic shift, as the very first iPhone in 2007 already used specialty glass from the same U.S. factory.

Beyond manufacturing, Apple plans to create 20.000 new U.S. jobs in the coming years, primarily in R&D. The move isn’t just a response to political pressure – it’s also a strategic play amid growing global tech tensions. By reducing dependence on Asian chipmakers like TSMC, which currently supplies advanced semiconductors for iPhones, Apple is hedging against future disruptions.

While TSMC is also expanding its U.S. footprint with a $165 billion investment in new plants, it still lags far behind Apple’s spending. The U.S. and Europe have long sought to reshore chip production, but where the Biden administration and EU relied on subsidies, Trump is betting on tariffs as leverage.

MK

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