Apple announces $100 billion investment in US iPhone manufacturing as Trump threatens tariffs on large chips

Apple announces $100 billion investment in US iPhone manufacturing as Trump threatens tariffs on large chips

Source: CNN Business | By Lisa Eadicicco | August 6, 2025

Apple announced that it will invest another $100 billion to expand its US business in response to US President Donald Trump 's warning of possible high tariffs on imported chips.

background

• Apple earlier this year pledged $500 billion to invest in the U.S. market, a move that came as Trump's tariffs on trading partners have cost the company billions of dollars.
• Trump said at an Oval Office event that he would consider imposing a 100% tariff on semiconductors made abroad, but has promised that companies manufacturing in the United States would be exempt from the tariffs.
• Apple CEO Tim Cook said that although it is unlikely that all iPhones will be assembled in the United States in the short term, the priority will be to move component production back to the United States.

Investment Details

• American Manufacturing Program :
  • Collaborate with major US suppliers such as Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, Broadcom, etc.
  • Establish a domestic chip supply chain in the United States, and expect to produce more than 19 billion chips in 2025, distributed in 12 states and 24 factories .
  • Expanding its partnership with Corning, future iPhones and Apple Watches sold worldwide will use glass from Kentucky .
  • Deepened collaboration with Coherent to strengthen laser supply for iPhone Face ID modules.
• Cook emphasized that this is the only investment plan of such a large scale in the world, and its goal is to complete the chip supply chain in the United States from design to packaging.

Policies and challenges

• Trump is pushing for the return of technology manufacturing to the United States to avoid dependence on production lines in China, India, Vietnam and other places.
• Experts point out that the lack of sufficient skilled workers in the United States, coupled with high labor costs, makes it difficult to assemble the entire aircraft in the United States.
• Apple's recent challenges:
  • Tariff impact (potentially $1.1 billion in additional costs in the third quarter).
  • Siri's major update has been delayed, and AI competition pressure is increasing.
  • India raises tariffs (but smartphones are temporarily exempt).

Industry Trends

• Several technology giants have recently increased their investment in American manufacturing:
  • Texas Instruments : Investing $60 billion to manufacture semiconductors.
  • TSMC : Invest $100 billion to build a factory in the United States.
  • Nvidia : Plans to build supercomputers in the United States.