Apple Increases Its U.S. Investments

Posted on April 26, 2021 by Paul Thurrott in Apple with 6 Comments

After promising to invest $350 billion in the United States over five years, Apple today upped the investment by 20 percent, to $430 billion.

“At this moment of recovery and rebuilding, Apple is doubling down on our commitment to US innovation and manufacturing with a generational investment reaching communities across all 50 states,” Apple CEO Tim Cook said. “We’re creating jobs in cutting-edge fields — from 5G to silicon engineering to artificial intelligence — investing in the next generation of innovative new businesses, and in all our work, building toward a greener and more equitable future.”

Apple won’t be building its microprocessors and other chipsets in the U.S. anytime soon, but it did lay out a laundry list of ways in which it could contribute to the economy at a time when the firm’s overseas profits and lack of taxes is triggering talk of policy changes. It says it will spend the money on suppliers, data centers, capital expenditures, and even dozens of Apple TV+ productions across 20 states.

One of the more high-profile additions is a new $1 billion investment in North Carolina that will result in a new Apple campus and engineering hub that will create at least 3000 jobs in machine learning, artificial intelligence, software engineering, and the like. Apple said it would also establish a $100 million fund to support schools and community initiatives in the greater Raleigh-Durham area and across North Carolina, with funds that will go toward broadband, roads and bridges, and public schools.

Overall, Apple said its investments should generate over $1.5 billion in economic benefits annually for North Carolina. And that the fact that Epic Games is headquartered in that state is, at best, a coincidence.

Join the discussion!


Don't have a login but want to join the conversation? Become a Thurrott Premium or Basic User to participate

Comments (6)

6 responses to “Apple Increases Its U.S. Investments”

  1. wright_is

    In the penultimate paragraph, I think you mean North Carolina, not North Caroline.

  2. mikegalos

    And it's a carrot that can be pulled away should an anti-trust case go in a way that Apple doesn't like. That's why that "generational investment" is reaching communities who vote for all 100 senators.

    • Greg Green

      In reply to MikeGalos:

      I think it was first done by Rockwell for the B1 bomber, ensuring sub contracts were doled out to districts with Reps on the Defense committees so the bomber would never really get cancelled. It lived quietly on the back burner in ‘research’ status after Pres Carter thought he cancelled it.

  3. nbplopes

    This looks like an attempt to buy the Justice / Political system considering the on going cases. As for Jobs created, never met a company that does not create them. In fact, know of companies with less revenue create directly far more Jobs.

    If this crossed their minds is some kind of admission of “wrong doings” ... no its not an investment in the US but themselves. Why even try to taint it differently ... :)

  4. ronh

    I think this is more about not wanting to trust or pay China than to create US jobs

    • wright_is

      In reply to RonH:

      We saw last year, what can happen to the supply chain, when governments get involved. Better to spread the risk, especially if it is the US Government throwing the wrench in the works...

      A lot of countries and companies are now re-thinking their policies and trying to get some supply capacity back to a local area of influence. Globalization only works if politics aren't allowed to get in the way - but as mankind has shown over the last several thousand years, politics (and religion) always gets in the way.

      I think manufacturing should be diversified, to ensure that the supply chain is as robust as possible.

      I think there is some political wrangling going on about anti-trust as well MikeGalos mentions, but it is also remediating the difficulties that were experienced last year at the same time.