Apple unveils ambitious plans for Texas AI server factory and 20,000 new U.S. jobs

February 24, 2025
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Apple unveils ambitious plans for Texas AI server factory and 20,000 new U.S. jobs

In a major boost to American manufacturing and innovation, Apple has revealed plans to construct a sprawling 250,000-square-foot factory in Houston, Texas, dedicated to building artificial intelligence servers.

The facility, slated to come online by 2026, will be developed in partnership with Foxconn, a subsidiary of Hon Hai Precision Industry, and will produce servers to power Apple Intelligence—the company’s suite of AI-driven features that assist with tasks like drafting emails.

Currently, these servers are manufactured overseas, making this a significant step toward bringing production back to the U.S.

The announcement aligns with Apple’s broader commitment to invest $500 billion in the United States over the next four years. This figure encompasses a wide range of expenditures, including purchases from domestic suppliers and the filming of TV shows and movies for Apple TV+ within the U.S.

The Texas factory is just one piece of this expansive strategy, which also includes the creation of approximately 20,000 research and development jobs nationwide.

Apple’s push comes on the heels of a reported meeting between CEO Tim Cook and President Donald Trump last week, amid a shifting trade landscape.

Earlier this month, Trump imposed 10% tariffs on many goods assembled in China—where most Apple consumer products, like the iPhone, are made. While Apple secured waivers from similar tariffs during Trump’s first term, the company appears to be doubling down on U.S.-based production to mitigate future risks.

Notably, many Apple components, such as chips from Broadcom, SkyWorks Solutions, and Qorvo, are already produced domestically.

This isn’t the first time Apple has made bold promises about U.S. investment. During Trump’s initial administration, the company pledged $350 billion over five years—a target it’s now surpassing with its new $500 billion commitment.

A key part of this expansion involves Apple’s growing focus on semiconductor production. Last month, the company began mass-producing its own custom-designed chips at a Taiwan Semiconductor Manufacturing Co. (TSMC) factory in Arizona.

Apple also announced plans to double its Advanced Manufacturing Fund from $5 billion to $10 billion, with a multibillion-dollar investment to further produce advanced silicon at TSMC’s Arizona facility.

While details of the TSMC partnership remain undisclosed, Apple has historically used this fund to help suppliers build infrastructure critical to its supply chain.

The Arizona factory owes its existence in part to Trump’s first-term industrial policies, including efforts to bring TSMC to the U.S. and the passage of the CHIPS Act, which aimed to strengthen domestic semiconductor manufacturing. Apple’s latest moves build on that foundation, signaling a long-term commitment to American innovation.

Beyond factories and chips, Apple is also investing in education. The company will launch a manufacturing academy in Michigan, where its engineers, alongside local university faculty, will offer free courses to small and mid-sized firms.

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