Apple has announced plans to develop a 250,000-square-foot factory in Texas to build artificial intelligence (A.I.) servers. The company said that it will work with partner Foxconn to build the facility in Houston, where it will assemble servers that go into data centers that power A.I.
The new facility, expected to be completed in 2026, will add about 20,000 research and development jobs across the U.S., said Apple. The company said it plans to spend $500 billion U.S. in the U.S. over the next four years, which also includes purchases from U.S. suppliers to the filming of television shows and movies for its Apple TV+ streaming service, reports Baystreet.ca.
News of the Texas factory comes after Apple Chief Executive Officer (CEO) Tim Cook met with U.S. President Donald Trump last week. The new U.S. factory also comes as many of Apple’s products that are assembled in China could face 10% tariffs, although the company did secure some waivers from China tariffs during the first Trump administration.
Apple made a similar announcement about its U.S. spending during the first Trump administration, saying then that it planned to spend $350 billion U.S. over five years.
Most of Apple’s consumer products are assembled outside of the U.S., though many components are still made there, including chips from Broadcom (AVGO).
Apple also said that it has begun mass producing microchips and processors of its own design at an Arizona factory owned by Taiwan Semiconductor Manufacturing Co. (TSM).
Apple added that it plans to increase its Advanced Manufacturing Fund from $5 billion U.S. to $10 billion U.S., with part of the money going towards production of “advanced silicon.”
Apple will also open a manufacturing academy in Michigan where its engineers will offer free courses for small and mid-sized manufacturing firms on project management and manufacturing process optimization.
The stock of Apple has risen 35% over the last 12 months to trade at $245.55 U.S. per share.