Apple announced on Monday its plans to help launch a 250,000-square-foot factory in Texas by 2026 to manufacture artificial intelligence servers, while also creating approximately 20,000 research and development jobs across the U.S. This marks a major investment for a company that has traditionally depended on overseas production. Expanding its domestic supply chain also aligns with Apple’s strategy to mitigate tariffs on products assembled in China.
The company plans to work with manufacturing partners to create a 250,000-square-foot plant near Houston to produce servers supporting its Artificial Intelligence (AI) infrastructure. Those servers go into data centers and are the foundation of the company’s Private Cloud computing and AI offerings. Apple says the new plant will be a ‘significant step forward’ and will help it reduce its dependence on servers made abroad.
In addition to the Texas plant, Apple’s new commitment includes doubling its US Advanced Manufacturing Fund from $5 billion to $10 billion and establishing an Apple Manufacturing Academy in Detroit. It will help train workers and consult with small and medium-sized businesses on implementing AI and innovative manufacturing techniques. The company is also doubling the amount of money it’s investing in its Supplier Academy program, which trains suppliers on developing components for Apple products.
This will add up to a massive increase in the number of research and development jobs Apple has in the United States, which should help it build teams with expertise in advanced silicon engineering, hardware engineering, and software development for the latest iPhones, iPads, and Macs. The company also plans to expand its existing campuses and laboratories in North Carolina, Arizona, Michigan, California, and Iowa.
The new investments will help Apple meet a promise made last week when it met with President Trump to discuss tariffs on Chinese-assembled products. Apple will invest $500 billion in the United States over the next four years. However, that figure covers everything from purchases from local suppliers to filming television shows and movies for its Apple TV+ service.
The most notable announcement is the new Texas facility, which is expected to open in 2026. The plant will assemble servers that power its AI features, such as Siri and the suite of apps that can draft emails and perform other tasks for its users. Currently, the servers are assembled in China, which makes this investment a significant shift for the tech giant. It is the most significant such move it has ever made in the United States. The investment is a big win for the president, who has long advocated for companies to expand in the country to help boost the economy and create American jobs. This could be a sign that more companies will follow suit and shift production from China to the United States to avoid tariffs on their products. Those tariffs start on March 12, with the initial 25 percent duties on steel and aluminum.