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Home Artificial Intelligence

Apple has announced plans to invest over $500 billion in United States to build AI server manufacturing factory

Tech Gist Africa by Tech Gist Africa
03/05/2025
in Artificial Intelligence, Investments, The Big 5, World News
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Apple has announced plans to invest over $500 billion in the United States over the next four years, a commitment that includes the construction of a state-of-the-art artificial intelligence (AI) server manufacturing facility in Houston, Texas. This 250,000-square-foot plant is slated to commence operations in 2026 and is expected to create thousands of jobs in the region.

The Houston facility will focus on producing servers integral to Apple’s AI initiatives, specifically designed to power Apple Intelligence and Private Cloud Compute services. These servers, previously manufactured outside the U.S., will now be assembled domestically, enhancing the efficiency and security of Apple’s data centers, which already operate on 100% renewable energy.

In collaboration with manufacturing partners like Foxconn, Apple aims to leverage advanced technologies to bolster its AI capabilities. Notably, the servers produced at this facility are anticipated to be equipped with high-end M5 chips, utilizing TSMC’s advanced semiconductor technology, with mass production expected to begin in the latter half of 2025.

Beyond the Houston plant, Apple’s substantial investment encompasses a broad spectrum of initiatives, including expanding data center capacities in North Carolina, Iowa, Oregon, Arizona, and Nevada. The company also plans to double its U.S. Advanced Manufacturing Fund from $5 billion to $10 billion, aiming to boost high-skilled manufacturing jobs nationwide. This includes a multibillion-dollar commitment to produce advanced silicon at TSMC’s Fab 21 in Arizona, where Apple, as the largest customer, recently commenced mass chip production.

Apple’s CEO, Tim Cook, emphasized the company’s dedication to supporting American manufacturing, stating, “We’re thrilled to expand our support for American manufacturing.”

This investment not only underscores Apple’s commitment to innovation but also aligns with broader efforts to enhance economic security by producing critical technology components domestically.

The move comes amid a global push for technological self-reliance, with companies like Taiwan Semiconductor Manufacturing Co. (TSMC) also announcing significant investments in U.S. chip manufacturing. TSMC recently pledged $100 billion to expand its U.S. operations, underscoring the strategic importance of domestic semiconductor production.

Apple’s comprehensive investment strategy reflects a commitment to bolstering its technological infrastructure while contributing to the U.S. economy through job creation and advanced manufacturing initiatives.

Read more on Tech Gist Africa: 

U.S. President Trump announces $500 billion investment in artificial intelligence infrastructure

Apple recently launched the iPhone 16, iPhone 16 Pro, Apple Watch Series 10, AirPods 4, and more

Elon Musk’s $97.4 billion offer is reportedly “unanimously” rejected by OpenAI’s board of directors

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Tech Gist Africa

Tech Gist Africa

Tech Gist Africa is a new media and technology news platform that focuses on the untold stories of innovative ideas closely connected to technology news from Africa.

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