WASHINGTON, DC, August 6: US President Donald Trump shakes hands with Apple Tim Cook CEO during the event held at the White House’s oval office on Wednesday, August 6, 2025.
Demetrius Freeman | Washington Post | Getty Images
President Donald Trump revealed what he wants apple Creating an iPhone in the US
Apple CEO Tim Cook Without making that ultimate concession, he is doing what he can to appease the commander into the chief.
Cook appeared on Trump in the White House on Wednesday, announcing plans to spend around $600 billion in the US over four years, Apple didn’t announce the Made-in-USA iPhone that Trump hoped for, but Cook touted Apple’s position on US production.
Some of Apple’s most valuable parts, such as glass and facial recognition sensors, are made by US companies that Apple has worked with for many years. The final assembly is, although very important, part of the iPhone production.
“The last meeting you focused on will be somewhere else for a while,” Cook said Wednesday in his oval office.
For now, Trump looked happy enough.
“He made a lot of components here and we’ve been talking about it,” Trump said. “Everything has been there elsewhere and it has been there for a long time in terms of costs and everything, but I think one day he may well encourage him to get it back.”
Experts said Cook’s announcement appears to be designed to remove Apple from the Trump crosshairs in regards to tariffs. Trump announced at a public meeting that the administration planned to place tariffs on chips that double the price, but Apple, which relies on hundreds of different chips on the device, will be exempt.
“The CEOs know they have to do something. What they discover is that if they give the president something to boast about without destroying the company, the problem may be a certain amount of time,” says Peter Cohan, a professor of strategy and entrepreneurship at Babson University who wrote a case study for Apple.
The Gambit worked. Apple Stock rose 5% on Wednesday and another 3% on Thursday.
“What Tim Cook showed in his first administration was a truly savvy voyage of dangerous waters,” said Nancy Tengler, CEO of Apple’s standing-place Laffer Tengler Investments. “I thought this announcement was symbolically very important as the president is looking for headlines.”
What Apple announced
The gift Apple CEO Tim Cook gave to US President Donald Trump stands at President Trump’s table on August 6, 2025, when he announced a $100 billion investment in the US manufacturing industry in an oval office in the White House in Washington, DC.
Jonathan Ernst | Reuters
Apple’s announcement was the so-called American manufacturing program. Apple said it was designed to create parts for US computers for other companies.
By purchasing parts and committing to expanding relationships with US suppliers, Apple could give those companies the skills and ability to expand their business. Apple also gives some credit to supporting a total of 450,000 jobs at its suppliers.
A closer look at the members of the program shows that Apple is leaning towards some of its longest-led partners. Together, Apple said that US suppliers are on track to make 19 billion chips for its products this year. That level of business is not visible overnight.
For example, Apple has all iPhone and Apple Watch coverslips. CorningKentucky will spend $2.5 billion on that effort. It’s a powerful symbol – mobile phones may be screwed together in China or India, but the surfaces that users touch around the world are made in the US
However, Apple has pointed to Corning as a key American supplier in the past. The company’s glass has been used on iPhones since its first version in 2007. Apple usually doesn’t let suppliers talk about their relationships, but former COO Jeff Williams welcomed Corning’s Glass in 2017 when he received an “investment” from the Apple Advanced Manufacturing Fund. Apple followed suit with a $250 million commitment in 2019 and a $45 million commitment in 2021.
Analysts are skeptical that the partnership can significantly improve Corning’s revenues. An analyst at Morgan Stanley wrote on Thursday that Corning “already produces 100% of Apple’s phones and tablet coverslips,” adding that Corning’s glass business, known as Specialty Materials, is worth around $2 billion a year.
Apple also highlighted its partnership with Coherent, a longtime supplier of Apple’s facial recognition hardware lasers, made in Texas. Morgan Stanley writes the business for around $100 million a year, and said Apple has options like Lumentum and Sony.
The iPhone maker said it has expanded its partnership Texas instruments Make chips in Texas and Utah. Texas Instruments has long supply of chips to the iPhone, including USB interfaces and circuits that control the power display. Apple said it will partner with Samsung, another major supplier of parts such as iPhone displays, to launch “innovative new technology for creating chips” without providing additional details.
Apple has declared that it will directly partner with semiconductor chain companies, even if it normally sells services and products to Apple suppliers. There are other partnerships Applied materialstool company, GlobalFoundriesChip Foundry, and Global Warfers America, Supply Taiwan Semiconductor Manufacturing Co. And a Texas instrument with a Made-in-USA wafer, the starting point for a batch of chips.
GlobalFoundries manufactures chips Broadcomprovides wireless chips for your iPhone. Both will work with Apple to develop and manufacture 5G components in the US
Meanwhile, Apple has purchased millions of advanced chips made by TSMC in Arizona, making it the largest customer in the factory. Cook joined former President Joe Biden at the factory in 2022 and promised to buy chips from the factory.
Apple said it would invest in Arizona and become a customer amkor The facility where chips are packaged and tested is the final stage before installation on a computer.
Apple also said it would expand existing data centers for artificial intelligence in North Carolina, Iowa, Nevada and Oregon. This highlights these data centers in their spending commitments in the past.
While partners sent inventory to Apple’s announcement, a JPMorgan Chase analyst warned in a memo on Thursday that “new, expanded engagement may not be entirely progressive to global revenue and outlook.”
Trump had a different view.
“Oh, I love that you’re doing this,” the president said after reading Apple’s list of commitments.
“Business Cost”
Apple doesn’t have to worry about who will be responsible for that promise to the company. The company has not broken our spending, and most Apple’s suppliers are contractually mandated to keep information confidential. Apple has not reported how much a new campus in Austin, Texas, or North Carolina will cost.
Additionally, the $600 billion heading number could include many normal costs.
Apple said in February that its $500 billion commitment includes spending on US supplier payments, direct employment, Apple Intelligence and corporate facility data centers, and Apple TV+ Productions in 20 states.
Apple began announcing US spending at a rate of around $70 billion a year during Trump’s first administration in 2018. In February, the company pledged $125 billion a year. Wednesday’s announcement brings that figure to $150 billion a year.
That’s still just a small portion of Apple’s total spending.
In Apple’s fiscal year 2024, the company spent $210 billion worldwide on sales costs, operating expenses of $57.5 billion and $9.45 billion in capital expenditures over the period of $275 billion.
Tefler said he doesn’t think the newly announced spending is important to Apple’s profitability, especially as he has already been associated with a variety of companies, such as Corning.
“They’ll spend money somewhere,” Tegler said.
Wedbush analyst Dan Ives previously predicted that the USA Made-in-USA iPhone would cost billions of dollars to produce, leaving consumers to pay $3,500, the announcement on Wednesday shows a very different approach. He said it was “the cost of doing business.”
