California, Aug 7 (UNI) Tech giant Apple is investing another USD 100 billion to expand its operations in the United States, the company announced, as President Donald Trump said he would levy a large import tax on chips coming into the country.
Apple’s investment comes after the tech giant already committed USD 500 billion to growing its domestic footprint earlier this year as tariffs levied by Trump on US trading partners have cost Apple billions, reports CNN.
The new effort involves expanding Apple’s relationship with its key domestic suppliers as Trump pressures Apple and other tech giants to shift production to the US.
At an Oval Office event to celebrate the investment, Trump doubled down on his tariff strategy by threatening 100 percent levies on semiconductors and chips made internationally.
But he said that companies that have “committed” to building in the US would not face a charge. He did not say when a formal announcement of chip tariffs would come or when such tariffs might take effect.
“But the good news for companies like Apple is, if you’re building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge,” Trump said regarding the semiconductor tariffs.
Apple CEO Tim Cook thanked the president in a press release announcing the initiative on Wednesday.
But Cook acknowledged that an iPhone that’s fully assembled in the United States is still far out despite Trump’s push. Instead, the company is focusing on manufacturing iPhone components stateside, an approach Trump seems content with for now.
The new investment will include the launch of an American Manufacturing Program aimed at moving more of Apple’s supply chain to the United States.
Apple intends to create a supply chain for its chips in the US through the programme, saying that it expects to produce more than 19 billion chips for its products in 2025. The chips will be made in 24 factories across 12 states.
The Trump administration has been pushing for Apple and other tech giants to produce their products in the United States rather than rely on assembly facilities and supply chain operations largely located overseas.
