Apple Announces $100 Billion US Investment to Avoid Tariffs

Apple has announced an additional $100 billion in US investment, primarily in manufacturing, bringing its total commitments to $600 billion. The move is expected to secure a long-term exemption from US import tariffs, which would avoid costly tariffs on its products. The investment focuses on semiconductors and glass for iPhones, expanding its existing US supply chain. Morningstar maintains a $210 fair value estimate for Apple, which rose 5% on the news.

Apple Inc. has announced an additional $100 billion investment in the United States, bringing its total commitment to $600 billion over the next four years. This significant increase in investment is primarily focused on manufacturing critical components such as semiconductors and glass for iPhones, aiming to expand its existing US supply chain [1].

The announcement, set to be made at the White House on Wednesday, is expected to secure a long-term exemption from US import tariffs. This exemption would avoid costly tariffs on Apple products, particularly those containing semiconductor chips [1]. The new investment includes a new manufacturing program designed to bring more of Apple's supply chain into the United States, with a focus on manufacturing critical components domestically [1].

Apple's CEO, Tim Cook, will attend the event along with President Donald Trump. The announcement comes amidst the Trump administration's broader trend of encouraging companies to increase their US presence. Earlier this year, Trump announced a $100 billion investment in artificial intelligence data centers from Oracle Corp., SoftBank Group Corp., and OpenAI Inc., with a goal of increasing the total to at least $500 billion [1].

Morningstar maintains a $210 fair value estimate for Apple, which rose 5% on the news of the additional investment [2]. The stock market's positive reaction reflects investors' confidence in Apple's commitment to domestic manufacturing and its potential to secure long-term tariff exemptions.

The new investment includes partnerships with key suppliers such as Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom. These partnerships aim to create an end-to-end silicon supply chain in the United States, producing more than 19 billion chips for Apple products in 2025 [2].

References:
[1] https://www.ainvest.com/news/apple-commits-100-billion-domestic-investment-promises-increased-manufacturing-2508/
[2] https://www.apple.com/newsroom/2025/08/apple-increases-us-commitment-to-600-billion-usd-announces-ambitious-program/