Computer and smartphone giant Apple plans to open a server manufacturing plant in Houston next year that will eventually employ thousands, part of a massive spending plan announced Monday.
The tech giant, long know for outsourcing the overwhelming majority of its product manufacturing to Foxconn and other suppliers, says it will take server production in house to feed the growing demand for AI and data center work. The 250,000-square-foot facility is slated to open in 2026.
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” said Apple CEO Tim Cook.
That $500 billion figure is eye-popping, but it doesn’t include a lot for direct manufacturing. Much of it will go to suppliers such as Taiwan Semiconductor Manufacturing Co. (TSMC) to make chips for future Apple phones and computers at TSMC’s upcoming plant in Arizona. Apple is including those dollars in its funding announcement along with more money for call centers and the salaries that it pays to Adam Scott to star in the Apple TV+ show Severance.
“The $500 billion commitment includes Apple’s work with thousands of suppliers across all 50 states, direct employment, Apple Intelligence infrastructure and data centers, corporate facilities, and Apple TV+ productions in 20 states,” the tech company said in its announcement.
Some of the money will also go into academies that will promote advanced manufacturing careers throughout the country and into its venture capital fund that supports manufacturing startups.
However, the doubling of the U.S. Advanced Manufacturing Fund to $10 billion will not likely lead to Apple dollars flowing into dozens of new startups. Much of that fund expansion will go to TSMC for new chips, Apple officials said.
On the education side, the company said it will open the Apple Manufacturing Academy in Detroit to consult with small- and medium-sized businesses on implementing AI and smart manufacturing techniques via free in-person and online training sessions.
Apple will remain off the list for this year and likely in 2026, but we’ll reevaluate its inclusion if U.S. manufacturing becomes a significant part of its business.
