Apple partners with Foxconn to build AI server factory in Texas

The company aims to add 20,000 research and development jobs across the US as part of its broader investment strategy

Apple announced plans on Monday to support the launch of a 250,000-square-foot AI server factory in Texas by 2026, in collaboration with Hon Hai Precision Industry’s Foxconn.

The company also aims to add 20,000 research and development jobs across the United States as part of its broader investment strategy.

Apple said it will spend $500 billion in the U.S. over the next four years, covering purchases from domestic suppliers, content production for Apple TV+, and manufacturing investments. The company did not specify how much of this amount was already allocated to existing suppliers such as Corning, which produces iPhone glass in Kentucky.

The announcement follows reports of Apple CEO Tim Cook meeting with former President Donald Trump last week.

Apple’s China-assembled products could face new 10% tariffs imposed by Trump earlier this month, though the company previously secured tariff waivers during his first administration. Apple made a similar commitment under Trump’s first term, pledging $350 billion in U.S. investments over five years.

While Apple’s consumer products are primarily assembled overseas, many key components, including chips from Broadcom, SkyWorks Solutions, and Qorvo are made in the U.S. Apple also confirmed that it began mass production of its own chips at Taiwan Semiconductor Manufacturing Co.’s (TSMC) Arizona factory last month. The facility is a result of TSMC’s expansion in the U.S., driven in part by the CHIPS Act, a key industrial policy initiative introduced during Trump’s first term.

Apple plans to increase its Advanced Manufacturing Fund from $5 billion to $10 billion, with a portion dedicated to advancing silicon production at TSMC’s Arizona plant. Although financial details of Apple’s commitment were not disclosed, the fund has previously been used to help suppliers build infrastructure for Apple’s supply chain.

Additionally, Apple will establish a manufacturing academy in Michigan to provide free courses for small and mid-sized manufacturers. Apple engineers, along with university staff, will train participants in project management and process optimization to support the company’s expanding U.S. manufacturing initiatives.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

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