Apple To Spend Over $500 Billion In The US On AI, Silicon Engineering, And Skills Development

By Amit Chowdhry • Feb 24, 2025

Apple announced its largest-ever spending commitment, with plans to spend and invest over $500 billion in the U.S. over the next four years. This pledge builds on Apple’s history of investing in American innovation and advanced high-skilled manufacturing. It will support many initiatives focusing on artificial intelligence, silicon engineering, and skills development for students and workers nationwide.

As part of these U.S. investments, Apple and its partners will open a new advanced manufacturing facility in Houston to produce servers that support Apple Intelligence, which is the personal intelligence system that helps users write, express themselves, and get things done. And Apple will also double its U.S. Advanced Manufacturing Fund, create an academy in Michigan to train the next generation of U.S. manufacturers, and grow its research and development investments in the U.S. to support advanced fields like silicon engineering.

This $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. And Apple remains one of the largest U.S. taxpayers, having paid over $75 billion in U.S. taxes over the past five years, including $19 billion in 2024 alone.

Apple currently supports over 2.9 million jobs across the country through direct employment, work with U.S.-based suppliers and manufacturers, and developer jobs in the thriving iOS app economy.

New Manufacturing Facility in Houston

As part of these new U.S. investments, Apple will work with manufacturing partners to begin production of servers in Houston later this year. A 250,000-square-foot server manufacturing facility, expected to open in 2026, will create thousands of jobs.

Previously manufactured outside the U.S., these servers that will soon be assembled in Houston play a key role in powering Apple Intelligence, and are the foundation of Private Cloud Compute, which combines powerful AI processing with the most advanced security architecture ever deployed at scale for AI cloud computing. And the servers bring together years of R&D by Apple engineers, and deliver the industry-leading security and performance of Apple silicon to the data center.

Apple designed these servers to be incredibly energy efficient, reducing the energy demands of Apple data centers — which already run on 100 percent renewable energy. And as Apple brings Apple Intelligence to customers across the U.S., it also plans to continue expanding data center capacity in North Carolina, Iowa, Oregon, Arizona, and Nevada.

Doubling U.S. Advanced Manufacturing Fund

As part of this new investment, Apple will be doubling its U.S. Advanced Manufacturing Fund, which was launched in 2017 to support innovation and high-skilled manufacturing jobs across America. And the growing commitment will increase the fund from $5 billion to $10 billion, focused on promoting advanced manufacturing and skills development throughout the country.

This fund’s expansion includes a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC’s Fab 21 facility in Arizona. And Apple is the largest customer at this state-of-the-art facility, which employs more than 2,000 workers to manufacture the chips in the United States. The mass production of Apple chips began last month.

Silicon used by Apple was designed to bring Apple users incredible features, performance, and power efficiency across their devices. And Apple’s suppliers already manufacture silicon in 24 factories across 12 states, including Arizona, Colorado, Oregon, and Utah. Plus, the company’s investments in the sector help create thousands of high-paying jobs across the country at U.S. companies like Broadcom, Texas Instruments, Skyworks, and Qorvo.

So far, Apple’s U.S. Advanced Manufacturing Fund has supported projects in 13 states, including Kentucky, Pennsylvania, Texas, and Indiana, that helped build local businesses, train workers, and create a wide range of innovative manufacturing processes and materials for Apple products.

Increasing R&D Investments Across the U.S.

Apple continues expanding its R&D across the U.S. And in the past five years, Apple has nearly doubled its U.S.-based advanced R&D spend, and it will continue to accelerate its growth.

Apple recently announced the newest addition to its iPhone lineup, iPhone 16e. iPhone 16e delivers fast, smooth performance and breakthrough battery life, thanks to the industry-leading efficiency of the A18 chip and the new Apple C1 — the first cellular modem designed by Apple, and the most power-efficient modem ever on an iPhone. And Apple C1 starts a new chapter to the story of Apple silicon and is the result of years of R&D investment, bringing together the work of thousands of engineers. Apple C1 is the start of a long-term strategy that will enable Apple to innovate and optimize the modem system for additional Apple products.

Over the next four years, Apple plans to hire around 20,000 people, of which the vast majority will be focused on R&D, silicon engineering, software development, and AI and machine learning. And the expanded commitment includes significant investment in Apple’s R&D hubs across the country. This includes growing teams across the U.S. focused on areas including custom silicon, hardware engineering, software development, artificial intelligence, and machine learning.

New Manufacturing Academy In Detroit

For helping companies transition to advanced manufacturing, Apple will open the Apple Manufacturing Academy in Detroit. And Apple engineers, along with experts from top universities like Michigan State, will consult with small- and medium-sized businesses on implementing AI and smart manufacturing techniques. This academy will also offer free in-person and online courses, with a skills development curriculum that teaches workers vital skills like project management and manufacturing process optimization. And the courses will help drive productivity, efficiency, and quality in companies’ supply chains.

Apple has been committed to investing in education and skills development for American workers and students. And this includes ongoing and expanding grant programs for organizations like 4-H, Boys & Girls Clubs of America, and FIRST, which work closely with Apple in communities across the country to create free programming that helps young people learn vital skills like coding.

Apple’s support for the next generation of innovators also included efforts like the company’s New Silicon Initiative, which prepares students for careers in hardware engineering and silicon chip design. For example, this program expanded to students at Georgia Tech last year and it now reaches students at eight schools across the country. And Apple is continuing to expand the initiative, including a new collaboration with UCLA’s Center for Education of Microchip Designers (CEMiD) beginning this year.

KEY QUOTE:

“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. From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing. And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”

– Tim Cook, Apple’s CEO