Apple's $600 Billion US Investment & Manufacturing Expansion - Corning Partnership, Domestic Silicon Supply Chain, and Strategic Responses - Apple 6000亿美元美国投资与制造业扩张：涵盖Corning合作、本土硅供应链建设及战略动因

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Sources: Apple and Corning partner to manufacture 100 percent of iPhone and Apple Watch cover glass in KentuckyApple increases U.S. commitment to $600 billion, announces American Manufacturing Program Apple says Samsung will supply chips from Texas factory | ReutersApple details $100 billion U.S. spending expansionTrump announces $100 billion new investment pledge from Apple | ReutersApple announces $2.5 billion expansion of iPhone and Watch glass partnership with Corning White House says Apple will remain largely unaffected by the tariffs targeting India - YouTube 

Key Logic 

The core information from Apple's press releases and related media reports regarding its investment commitments in the United States indicates that Apple is significantly increasing its total investment pledge in the U.S. to $600 billion over four years. This initiative, launched through the American Manufacturing Program, deepens collaborations with various partners, including Corning, aiming to build a more robust domestic supply chain, particularly to achieve "Made in America" status for critical components in cover glass and semiconductor manufacturing. While Apple officially emphasizes that this move is to promote U.S. job creation and technological innovation, media and analysts generally believe that these investments largely represent Apple's strategic response to political pressure from the Donald Trump administration, a means to mitigate potential tariff risks, and an inherent need to diversify its global supply chain (especially in light of the over-reliance on China exposed during the pandemic).

Apple's Ambitious Commitment to US Investment and Job Creation, and Its Historical Trajectory 

• Apple has announced that it will increase its total investment commitment in the United States to $600 billion over the next four years, marking a significant acceleration of its investment plans.
  • CNBC noted that this investment aims to incentivize overseas companies to purchase more U.S.-made components.
  • Donald Trump praised this move, calling it the largest investment Apple has ever made anywhere.
  • Apple CEO Tim Cook responded that the company took Donald Trump's challenge seriously, considering what more could be done beyond its previous $50 billion investment pledge.
• Apple currently supports over 450,000 supplier and partner jobs across 50 states in the U.S.
• Over the next four years, Apple plans to directly hire 20,000 employees in the U.S., with the vast majority focusing on R&D, silicon engineering, software development, and AI and machine learning.
• Apple has made similar U.S. investment commitments in the past:
  • In 2018, during Donald Trump's first term, Apple pledged to invest $350 billion in the U.S. over five years.
  • In 2021, Apple announced plans to invest $430 billion over five years.
  • This latest commitment ($600 billion over four years) equates to $125 billion annually, demonstrating a significant increase in investment.
  • Although Apple does not report its U.S. expenditures annually, and suppliers typically do not disclose revenue from Apple, CNBC noted that most of Apple's previous commitments have been fulfilled.

Launching the American Manufacturing Program, Deepening Domestic Manufacturing 

• Apple has introduced the new American Manufacturing Program, designed to bring more of Apple's supply chain and advanced manufacturing capabilities to the United States.
  • Through the American Manufacturing Program, Apple will increase its investments in the U.S. and incentivize global companies to manufacture more critical components domestically.
• Tim Cook, Apple's CEO, stated:
  • Apple is proud to increase its U.S. investment to $600 billion over four years and launch the American Manufacturing Program.
  • This includes new and expanded partnerships with 10 companies in the U.S. that produce components for Apple products sold globally.
  • He expressed gratitude for the support of the U.S. President.
• Apple components and assemblies manufactured in the U.S. are sold worldwide; in fact, approximately two-thirds of U.S.-made components are exported to customers outside the U.S.
• The initial partners of the American Manufacturing Program include:
  • Corning
  • Coherent
  • GlobalWafers America
  • Applied Materials
  • Texas Instruments
  • Samsung
  • GlobalFoundries
  • Amkor
  • Broadcom
• This also builds on Apple's commitment in July to purchase U.S.-made rare earth magnets from MP Materials.

Corning Partnership: 100% US Manufacturing of iPhone and Apple Watch Cover Glass 

• Apple and Corning have announced a significant expansion of their long-standing partnership, aiming to manufacture precision glass for Apple products, with a new investment of $2.5 billion.
  • The goal is to produce all iPhone and Apple Watch cover glass at Corning's manufacturing facility in Harrodsburg, Kentucky.
  • This means that for the first time, 100% of the cover glass for iPhone and Apple Watch devices sold globally will be manufactured in the U.S.
  • Steve Kovach (reporter) emphasized that this is the only "tangible announcement and deal, coupled with a real building expansion project."
• Corning is creating the world's largest and most advanced smartphone glass production line at its Harrodsburg facility, dedicating the entire plant to manufacturing for Apple.
• This initiative will increase Corning's manufacturing and engineering workforce in Kentucky by 50%.
• Apple and Corning will also open a new Apple-Corning Innovation Center at the Harrodsburg facility.
  • This innovation center will play a crucial role in the development and engineering of advanced materials and next-generation manufacturing platforms for future generations of Apple products.
• Tim Cook stated that Apple is excited to partner with Corning to build the largest and most advanced smartphone glass production line ever, and thanked U.S. manufacturing for its strength.
• Wendell Weeks, Corning's CEO, stated that Apple is an outstanding partner for U.S. manufacturers like Corning, with both companies innovating together and pushing the boundaries of possibility.
  • He noted that 18 years ago, Corning developed and manufactured glass for the first-generation iPhone in Harrodsburg, Kentucky.
  • With Apple's new multi-billion dollar commitment and the launch of the most advanced manufacturing platform, Corning is hiring more employees and bringing 100% of Apple's demand for iPhone and Apple Watch cover glass back to the birthplace of innovation.
• The partnership between Apple and Corning has continued since the launch of the first-generation iPhone in 2007.
• Currently, the Harrodsburg, Kentucky facility produces high-quality glass called Ceramic Shield for Apple, a result of years of close collaboration and innovation between their engineers.
• Since Apple established the U.S. Advanced Manufacturing Fund in 2017, Apple has invested nearly $500 million in Corning's operations in Kentucky and spent billions of dollars on purchasing U.S.-made glass.
• Corning also supplies raw materials to GlobalWafers, another American Manufacturing Program company, which will use Corning's silicon to manufacture advanced bare wafers in the U.S. for the first time.
  • In this way, Corning also plays a key role in Apple's supply chain for producing advanced silicon chips in the U.S.

Building an End-to-End US Silicon Supply Chain 

• With new partnerships, Apple is leading the creation of an end-to-end U.S. silicon supply chain, with partners at every critical stage of silicon production.
  • Sabih Khan, Apple's COO, stated that Apple is committed to supporting U.S. suppliers involved in every critical stage of the chip manufacturing process, from the earliest R&D phases to final manufacturing and packaging.
  • Apple wants the U.S. to maintain its leadership in this critical industry and is expanding efforts to develop a silicon manufacturing ecosystem that will benefit innovators across the U.S.
• This U.S. silicon supply chain is expected to produce over 19 billion chips for Apple products in 2025.
  • Wafers:
    • Wafers are the foundation of any silicon chip. Apple is partnering with GlobalWafers America in Sherman, Texas, to produce advanced wafers in a U.S. semiconductor fab for the first time.
    • GlobalWafers America uses silicon from U.S. sources (including Corning's Hemlock Semiconductor) to produce the world's most advanced silicon wafers.
  • Manufacturing Equipment:
    • Apple is working directly with Applied Materials to increase the output of U.S. semiconductor manufacturing equipment.
    • Applied Materials' facility in Austin, Texas, is a critical hub for producing cutting-edge chip equipment.
  • Fabs (Wafer Manufacturing):
    • Fabs convert bare wafers into chips.
    • TSMC: The TSMC facility in Arizona is producing tens of millions of chips for Apple, using one of the most advanced process technologies in the U.S. Apple is the largest customer of this fab.
    • Texas Instruments: Apple is expanding its collaboration with Texas Instruments to increase future product collaborations and critical U.S. capacity.
      • Apple's new commitment to Texas Instruments will support the installation of more equipment at its Lehi, Utah facility and the new plant in Sherman, Texas.
      • These facilities house Texas Instruments' most advanced process technologies and utilize U.S.-made chip manufacturing equipment from Applied Materials' Austin facility and advanced silicon wafers from GlobalWafers America.
      • These fabs will manufacture critical foundational semiconductors for Apple products, including iPhone devices sold globally.
    • Samsung: Apple is partnering with Samsung's fab in Austin, Texas, to introduce unprecedented innovative chip manufacturing technology.
      • By bringing this technology to the U.S. for the first time, this facility will supply chips optimized for Apple products' power efficiency and performance, including iPhone devices sold globally.
      • A Samsung spokesperson declined to comment on this.
      • Reuters cited Pak Yuak, an analyst at Kiwoom Securities, who stated that Samsung's chip foundry business is expected to reduce losses in 2026 by securing new orders, including image sensor chips for iPhone 18s and chips for Tesla.
      • Tesla also recently signed a $16.5 billion agreement with Samsung to procure Tesla's next-generation AI6 chips.
    • GlobalFoundries: GlobalFoundries and Apple have reached an agreement to bring more semiconductor manufacturing to the U.S., focusing on cutting-edge wireless technology and advanced power management—critical technologies for extending battery life and enhancing connectivity in Apple devices.
      • This collaboration will bring new capabilities, jobs, and technology to GlobalFoundries' semiconductor fab in Malta, New York.
  • Packaging:
    • Packaging is the final critical step in manufacturing silicon chips.
    • Apple is investing in Amkor's new advanced chip packaging and testing facility in Arizona and will be its largest customer.
    • This will accelerate the development of U.S. packaging capabilities, significantly strengthening the U.S. semiconductor supply chain.
    • This facility will package and test Apple chips manufactured at the nearby TSMC fab and produce chips used in iPhone devices sold globally.
  • Cellular Components:
    • Apple is also partnering with Broadcom and GlobalFoundries to develop and manufacture additional cellular semiconductor components in the U.S.
    • These components are essential for 5G communication in Apple products.
    • Broadcom will develop and produce cellular components for 5G and wireless connectivity domestically in the U.S.

Apple's Investment and Expansion in Other Key US Facilities 

• Server Manufacturing:
  • Construction began earlier this year on Apple's new advanced server facility in Houston, which produced its first test unit in July.
  • This 250,000 square feet server manufacturing plant is scheduled to begin mass production in 2026.
  • The Houston servers, previously manufactured overseas, will play a critical role in powering Apple Intelligence and form the foundation of Private Cloud Compute.
  • Steve Kovach (reporter) noted that this investment shifts "work previously done overseas" to Texas.
• Apple Manufacturing Academy:
  • The new Apple Manufacturing Academy in Detroit has opened for registration and is set to open on August 19.
  • The academy will provide consulting and courses to small and medium-sized businesses, guiding them on how to apply advanced manufacturing and AI to their manufacturing projects.
• Data Center Expansion:
  • Expansion work is underway at the data center in Maiden, North Carolina, where Apple has made significant investments in its most advanced facilities to support users of Apple services in North America.
  • This expansion builds on Apple's existing investment of over $500 million in Catawba County.
  • Apple's Maiden facility supports Apple services such as iCloud, App Store, Apple Music, iMessage, Apple TV+, and Apple Sports.
  • The expanded capacity will also help support the growth of Apple Intelligence.
  • Like all Apple facilities, this data center is powered by 100% renewable energy provided by Apple's projects in the region.
  • Apple is also expanding data center capacity across various U.S. states, with construction ongoing in Iowa, Nevada, and Oregon.
• Austin Second Campus Construction:
  • Construction of Apple's second campus in Austin is continuing.
  • Apple has over 13,000 team members in Texas, including thousands already working in three completed office buildings spanning over 1 million square feet.
  • The three buildings currently under construction include expansive new R&D lab spaces for Apple's hardware engineering, hardware technology, and software engineering teams.

Political Pressure, Tariff Impact, and Apple's Strategic Responses Behind the Investment 

• The Donald Trump administration has consistently pushed for manufacturing to return to the U.S. and has openly criticized Apple for not manufacturing iPhones in the U.S.
  • Donald Trump praised this, calling it the largest investment Apple has ever made anywhere, and implied the company was "coming home."
  • Bloomberg analysts noted that Apple's investment commitment is part of its long-term plan and was used by the Trump administration as a symbol of "victory," also serving to "mollify Trump's anger, as their supply chain largely remains outside the U.S."
• Tariff Threats:
  • Donald Trump had threatened to impose 25% tariffs on products manufactured overseas and stated he planned to impose 100% tariffs on semiconductors and chips, but promised that Apple, if it built factories in the U.S., would be exempt.
  • Tariffs have had a real impact on Apple: Apple lost $800 million in the June quarter due to tariffs and expects to lose $1.1 billion this quarter.
• Apple's Response Strategy:
  • This investment is seen as Apple's effort to mitigate potential tariffs and improve relations with the government under political pressure.
  • Tim Cook presented Donald Trump with a U.S.-made commemorative item with a 24-carat gold base at the White House.
  • Although Donald Trump desired iPhone assembly to be done domestically in the U.S., Tim Cook noted that many iPhone components (such as semiconductors, glass, Face ID modules) are already manufactured in the U.S., but final assembly would need to remain overseas "for some time," as fully shifting iPhone production to the U.S. is economically unfeasible and could take several years.
  • Experts generally agree that due to labor costs and the complexity of global supply chains, domestic iPhone manufacturing in the U.S. remains impractical.
  • Apple had previously visited a Texas factory with Donald Trump in 2019, which had been producing Apple computers since 2013, but its production has since shifted to Thailand.
  • Apple has recently moved some product manufacturing from China to Vietnam, Thailand, and India.
  • Bloomberg analysts emphasized: "If you're talking about server farms, if you're talking about sourcing from U.S. manufacturers, if you're talking about training facilities, that's a huge difference from actually assembling these high-end devices and moving the supply chain out of India and China."
  • Bloomberg analysts noted: "Apple has an interest in diversifying its supply chain. No one doubts that a huge part of it is dependent on China, which really caught them and many others off guard during the pandemic."
  • Bloomberg analysts concluded: "They really need to get away from that dependence and diversify."

Donald Trump and Tim Cook meeting at the White House

Details of New India Tariffs and Analysis of Apple's Limited Impact 

• Megan Cassella (White House Correspondent) detailed the implementation of new U.S. tariffs on India and explained why Apple's impact is limited.
  • New India tariffs will climb to 25% before midnight tonight and reach 50% by the end of this month (effective August 27).
  • Regarding Apple's impact, the wording of the executive order dictates limited effects:
    • The tariff increase to 50% is effectively a doubling of the existing 25% reciprocal tariff.
    • Since it's merely a doubling, this means the same exemption clauses remain in effect, and semiconductors and all derivative products will continue to be exempt from all these tariffs.
    • Therefore, the tariff increase to 50% will not affect any semiconductors or derivative products from India.
    • This means Apple will remain largely unaffected by these new tariffs, both currently and in the future.
• Targeted Nature of the Executive Order and Strategy Towards Russian Oil Buyers:
  • The title and content of the executive order explicitly target "Russian oil buyers," with India being specifically named.
  • Although India is the second-largest buyer of Russian oil, China is by far the largest, and the U.S. is not currently targeting China in any way.
  • This reflects the U.S.'s cautious consideration in maintaining dialogue channels with China, and also makes these tariffs more symbolic than substantive in terms of geopolitical impact at this stage.
• BRICS Countries' Reaction to Tariffs and the Role of the World Trade Organization:
  • The Indian government stated it would take all necessary actions to protect its national interests, lamenting that the U.S. chose to impose additional tariffs.
  • Brazil has requested consultations with the World Trade Organization regarding the tariffs, but the World Trade Organization's authority to enforce trade rules on the global stage has significantly diminished.

Market Reaction and Analyst Commentary 

• The market reacted positively to Apple's announcement:
  • Apple stock price rose by 5% at the close of the day.
  • Corning stock price increased by nearly 4% in after-hours trading.
  • Applied Materials rose by nearly 2%.
• Analysts generally consider Apple's move a "shrewd solution."
  • Daniel Ives, an analyst at Wedbush Securities, stated that this is a step in the right direction for Apple, helping to "curry favor" with the Donald Trump administration after months of strained relations with the White House.
  • Nancy Tengler, CEO and CIO of Laffer Tengler Investments (which holds Apple stock), believes this is a "shrewd solution" for Apple to address Donald Trump's demands for it to manufacture all iPhones in the U.S.
  • However, analysts also noted that this investment commitment aligns with Apple's previous spending patterns and similar commitments were made under the Biden administration and during Donald Trump's first term.