Apple details $100 billion U.S. spending expansion, including $2.5 billion iPhone glass factory

In a significant announcement on Wednesday, Apple CEO Tim Cook, alongside President Donald Trump, revealed plans for a staggering $100 billion investment in U.S. companies and suppliers over the next four years. This new commitment aims to encourage overseas companies to increase their purchases of American-made components. This investment builds upon a previous $500 billion pledge made by Apple earlier this year. "This is the largest investment Apple has ever made in America and anywhere else," Trump stated. He noted that while Apple has previously invested in various other countries, the focus is now on bringing production back to the U.S. Apple's initiative, branded as the American Manufacturing Program, includes partnerships with notable companies such as Corning, Coherent, GlobalWafers, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom. A key component of this program is a $2.5 billion investment to expand operations at Corning's facility in Kentucky, which produces glass for iPhones. Apple confirmed that all glass components for iPhones and Apple Watches will now be manufactured in the United States. Additionally, Apple has entered into a multiyear supply agreement with Coherent to manufacture lasers used in the iPhone's facial recognition technology. The company also highlighted that its U.S.-based supply chain is set to produce over 19 billion chips for its products this year, including those manufactured by TSMC in Arizona and wafers produced by GlobalWafers, along with chips from Texas Instruments. Furthermore, Apple plans to work closely with Texas Instruments to enhance production capabilities in factories located in Utah and Texas. GlobalFoundries, which specializes in older chip manufacturing for the U.S. government, announced plans to produce wireless charging technology in New York. Apple has made similar commitments in the past. In 2018, under pressure from the Trump administration, Apple pledged $350 billion for U.S. investments over five years, averaging about $70 billion annually. In 2021, this figure increased to a commitment of $430 billion over five years, or approximately $86 billion per year. The latest announcement raises Apple's total commitment to $600 billion over the next four years, translating to around $125 billion per year. Despite these investments, Apple is currently grappling with rising tariffs that could impact its profitability. The company is facing costs associated with tariffs on Chinese imports and anticipates increased import taxes on semiconductors as a result of a Section 232 investigation. In May, Apple revealed that many of its phones sold in the U.S. are now assembled in India to circumvent Chinese tariffs. While tariffs on Indian imports are climbing to 25%, sources from the White House indicated that Apple will remain largely unaffected by these new tariffs. However, Apple has warned that tariffs could result in a $1.1 billion hit to its finances in the current quarter.