Washington, DC — February 7, 2026

Apple Commits $500 Billion to US Manufacturing Overhaul, Targeting 1 Million New Jobs Amid Global Supply Chain Shifts

Apple Inc., the world’s most valuable company, announced a landmark $500 billion investment plan on February 7, 2026, to expand manufacturing operations across the United States. Chief Executive Officer Tim Cook unveiled the initiative at a White House event attended by President Kamala Harris and key business leaders. The move aims to create at least 1 million high-skilled jobs over the next decade, reduce reliance on overseas suppliers, particularly in China, and bolster domestic production of semiconductors, batteries, and consumer electronics.

The announcement comes amid escalating US-China trade tensions and supply chain disruptions that have plagued the tech sector since the COVID-19 pandemic. Cook emphasized that the investment will span 20 states, focusing on advanced manufacturing hubs in Texas, Arizona, and North Carolina. Analysts project this could inject $1.2 trillion into the US economy through multiplier effects, positioning Apple as a leader in reshoring efforts critical to national security and economic resilience.

The plan includes partnerships with US chipmakers like Intel and TSMC’s Arizona facility, alongside new factories for electric vehicle components and AI hardware. This development matters profoundly for American workers, as it addresses a manufacturing job deficit estimated at 2.5 million positions by the Bureau of Labor Statistics, while challenging competitors to follow suit in a post-pandemic recovery landscape.

Context & Background

Apple’s manufacturing push builds on years of strategic shifts away from Asia-dominated supply chains. The company, which derives over 50% of its revenue from iPhones assembled primarily in China by Foxconn, faced vulnerabilities exposed during the 2020-2022 global chip shortage, which delayed product launches and cost billions.

US policy has accelerated this trend. The CHIPS and Science Act of 2022 allocated $52 billion in subsidies for domestic semiconductor production, prompting Apple to invest $1 billion in Arizona’s TSMC plant in 2023. Tariffs imposed during the Trump administration and continued under Biden-Harris raised costs for imported components, making US-based production more viable.

Historically, Apple’s US footprint was limited to design and retail, with Cupertino, California, as its nerve center. The 2019 launch of Mac Pro assembly in Texas marked an early step, but geopolitical risks—including US export controls on advanced chips to China in 2024—intensified the need for diversification. This $500 billion pledge dwarfs prior commitments, rivaling federal infrastructure spending.

Labor market dynamics also factor in. With US manufacturing employment hovering at 13 million jobs per recent Labor Department data, automation and offshoring had eroded blue-collar opportunities. Apple’s plan targets regions hit hardest by deindustrialization, such as the Rust Belt and Sun Belt suburbs.

Key Developments

The investment blueprint details $200 billion for semiconductor fabrication plants in Texas and Ohio, partnering with Intel, which reported a $17 billion loss in its foundry unit last year but stands to gain from Apple’s scale. Another $150 billion targets battery production for future Apple EVs and wearables, with sites in Nevada and Georgia leveraging Inflation Reduction Act tax credits worth up to $45 per kilowatt-hour.

Apple plans 15 new campuses employing 50,000 workers each at peak, equipped with robotic assembly lines and AI-driven quality control. Initial construction begins Q2 2026, with first outputs by 2028. The company cited a 25% cost reduction in US production via economies of scale and government incentives.

Supply chain specifics include sourcing rare earths from US mines in California and Wyoming, reducing China’s 80% market dominance. Apple will train 200,000 workers through community colleges and its own academies, focusing on skills like advanced soldering and machine learning integration.

Financially, Apple holds $162 billion in cash reserves as of Q1 2026 filings, funding the bulk without debt. Stock rose 4.2% in pre-market trading, adding $180 billion to market cap, now exceeding $3.5 trillion. Competitors like Samsung and Google signaled exploratory US expansions in response.

Environmental commitments feature prominently: all facilities aim for carbon neutrality by 2030, using solar arrays and recycled materials. This aligns with Apple’s 2030 net-zero pledge, audited by third-party firms like Veritas.

Regional breakdowns show Texas receiving $100 billion for a “Silicon Prairie” hub, Arizona $80 billion expanding TSMC’s $65 billion fab, and North Carolina $60 billion for display tech amid BOE’s China setbacks.

Reactions & Quotes

President Kamala Harris hailed the announcement as a “game-changer for American innovation.”

“This is the future of made-in-America excellence. Apple’s bold step will secure our supply chains and create opportunities for generations,” — Kamala Harris, US President.

Tim Cook underscored the strategic imperative during the event.

“We’ve designed the world’s best products in California for decades. Now, we’re building them here too—for resilience, for jobs, for America,” — Tim Cook, CEO of Apple Inc.

Labor leaders expressed cautious optimism. United Auto Workers President Shawn Fain noted potential unionization challenges.

“One million jobs sound great, but they must be family-sustaining with protections. We’ll hold Apple accountable,” — Shawn Fain, President of United Auto Workers.

Critics from environmental groups raised concerns over resource use. Sierra Club Executive Director Michael Brune stated:

“Carbon neutrality is promising, but water-intensive fabs in arid states like Arizona could strain resources amid climate change,” — Michael Brune, Executive Director of Sierra Club.

Economist Paul Krugman praised the economic ripple effects.

“This isn’t just corporate philanthropy; it’s smart business amplifying fiscal multipliers in manufacturing,” — Paul Krugman, Nobel Laureate Economist.

Republican Senator Ted Cruz welcomed investments in red states but questioned federal incentives.

“Great for Texas jobs, but subsidies distort markets. Private capital should lead,” — Ted Cruz, US Senator from Texas.

Implications & Analysis

For Apple, the shift fortifies profit margins long-term by mitigating tariff risks and currency fluctuations. Analysts at Goldman Sachs forecast a 15% earnings boost by 2030, though upfront costs could pressure near-term margins to 28% from 31%.

Workers stand to gain most, with average salaries projected at $85,000 plus benefits, exceeding national manufacturing medians by 30%. However, automation may cap low-skill hiring, favoring STEM-trained employees and exacerbating skills gaps.

Broader business implications include a reshoring wave. Rivals like Microsoft and Amazon, with $100 billion-plus cash piles, may match commitments to avoid competitive disadvantages in talent and procurement.

Geopolitically, it advances US tech independence, aligning with National Security Strategy goals. Reduced China exposure—currently 20% of Apple’s capex—counters Beijing’s export bans on gallium and germanium in 2025.

Challenges loom: Regulatory hurdles from the FTC on market dominance, union drives, and infrastructure bottlenecks like power grids strained by AI data centers. Success hinges on execution, with delays possible amid labor shortages.

Globally, this signals premium brands prioritizing sovereignty, potentially inspiring EU and Japanese firms. US GDP growth could accelerate 0.5% annually per Moody’s models, aiding fiscal sustainability.

Long-term, it reshapes trade: WTO disputes may arise if China retaliates, but diversified chains enhance resilience against black-swan events like pandemics or wars.

Timeline

• 2018: US-China trade war begins with tariffs on $300 billion in goods, impacting Apple’s supply chain costs.
• 2020-2022: COVID-19 chip shortage delays iPhone production, costing Apple $10 billion; exposes Asia reliance.
• 2022: CHIPS Act passes, providing $52 billion for US semis; Apple pledges $1 billion to TSMC Arizona.
• 2023: Mac Pro assembly expands in Texas; Apple reports first US-made iPhone components.
• 2024: US bans exports of AI chips to China; Apple shifts 10% supplier spend to Vietnam and India.
• 2025: Inflation Reduction Act incentives peak; Apple announces $430 billion US economic contribution over five years.
• February 7, 2026: Tim Cook reveals $500 billion manufacturing plan at White House, targeting 1 million jobs.

Apple’s monumental commitment ushers in a new chapter for American industry, blending corporate ambition with national priorities. As factories rise and jobs materialize, the initiative promises to redefine US economic competitiveness, fostering innovation and stability in an uncertain global order. Stakeholders across sectors will watch closely as this blueprint unfolds over the coming decade.