Apple's $500B US Investment

[buster]

Apple CEO Tim Cook said in the announcement: "We are bullish on the future of American innovation, and we're proud to build on our longstanding U.S. investments with this $500 billion commitment to our country's future."

Apple announced Monday that it will spend and invest more than $500 billion in the US over the next four years, including plans to build a new manufacturing factory, double its advanced manufacturing fund, and hire 20,000 people.

"From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing. And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”

The 20,000 people Apple said it will hire over the next four years will be mostly focused on R&D, silicon engineering, software development, and AI and machine learning. The company will open a new manufacturing academy in Detroit, where its engineers will consult with businesses on implementing AI and smart manufacturing techniques.

 

[demarpaint]

Great news.

 

[Kira]

$500,000,000,000 / 20,000 / 4 years....we shall see.

I bet it falls way short.
"support for American manufacturing" has never been any company's goal...except in advertising commercials.
Reaching quarterly goals and paying dividends is 'Job #1'.

 

[KrisZ]

I have a feeling many companies in the next four years will do things that we were told by various experts, were not financially feasible.

 

[4WD]

Apple CEO Tim Cook said in the announcement: "We are bullish on the future of American innovation, and we're proud to build on our longstanding U.S. investments with this $500 billion commitment to our country's future."

Apple announced Monday that it will spend and invest more than $500 billion in the US over the next four years, including plans to build a new manufacturing factory, double its advanced manufacturing fund, and hire 20,000 people.

"From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing. And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”

The 20,000 people Apple said it will hire over the next four years will be mostly focused on R&D, silicon engineering, software development, and AI and machine learning. The company will open a new manufacturing academy in Detroit, where its engineers will consult with businesses on implementing AI and smart manufacturing techniques.

Expanding the Austin campus too …

 

[Vil_Riker]

The current president's term is 4 years... Hence the announcement.

 

[4WD]

Great news.

Now if folks can avoid politics …

 

[Nessism1]

Investing in the US is great news, but it's hard to imagine such massive spending in just 4 years. No doubt, politics do come into play here, but I agree, this is not the place to get into that discussion.

 

[supton]

Politics clearly come into play--a "free" market is what pushed these companies overseas. Free as in at least not controlled here, perhaps manipulated there, thus chasing the dollar is what drove them out. Change the rules at home and now it makes sense to have a plan for here. We'll see how it works out.

I'm wondering if it can really ramp up that fast in 4 years. Quite a bit of equipment to procure and labor to train.

I also wonder, will it be an Apple facility, or will it be an investment into something that others can and will use? Like a foundry where they will sell wafers to anyone.

We also have to wait and see if it takes hold. 10 years from now, is it still in use? Companies abandon projects when winds change.

 

[demarpaint]

Now if folks can avoid politics …

Yep, I did, it's not that hard.

 

[andrew_j]

It’s cyclical every 4-8 years.

No offense but Detroit ? Not sure you’ll get best of best wanting to leave their roots in tech areas.

 

[supton]

No offense but Detroit ? Not sure you’ll get best of best wanting to leave their roots in tech areas.

It says manufacturing academy, maybe it's just where they plan to teach the engineers and the managers, then they'll ship these people to where they will be needed? Guess on my part. They could run manufacturing lines in Detroit, if it's assembly I don't see a problem with that. The tricky part is wafer making, wafer testing and packaging. Final test I think is still cleanroom level, but no assembly place I've been is.

 

[dubber09]

So, should we expect seeing $5k iPhones soon then?

 

[PandaBear]

It "depends". R&D cost a lot of money and 500B isn't unrealistic if those are including R&D. Or, if they buy from other US vendors. Also depending on how they "spend" 500B. If it is new construction and land involved and they amortize them over 27 years then that 500B * 4 / 27 can easily be done with only a fraction of the cash.

 

[Snagglefoot]

Maybe they will sell a few more houses in Detroit. But seriously, one of the reasons for putting anything in Detroit might be to access electrical power from Ontario.

 

[Fitter30]

TSMC Arizona big chip manufacturer​

Just read a article that they can't find enough high skilled welders to keep up with construction. With three factories $65 billion
https://www.tsmc.com/static/abouttsmcaz/index.htm

 

[JeffKeryk]

TSMC Arizona big chip manufacturer​

Just read a article that they can't find enough high skilled welders to keep up with construction. With three factories $65 billion
https://www.tsmc.com/static/abouttsmcaz/index.htm

TSMC has several US problems... The skilled labor shortage is a biggie. This is nothing new; why do you think Silicon Valley pays so well?
We need to value education more, starting with better pay for instructors. Otherwise we hand tech to China.
Regarding construction workers, I say train them for free. Community Colleges are the answer. Fund them.

Culture is another problem. The Korean work ethic is on another level. Finally, the language barrier is a big problem.

No one said this would be easy.

 

[Fitter30]

TSMC has several US problems... The skilled labor shortage is a biggie. This is nothing new; why do you think Silicon Valley pays so well?
We need to value education more, starting with better pay for instructors. Otherwise we hand tech to China.
Regarding construction workers, I say train them for free. Community Colleges are the answer. Fund them.

Culture is another problem. The Korean work ethic is on another level. Finally, the language barrier is a big problem.

No one said this would be easy.hey don't put up with any bs

Quality trade schools like Rankin trade school in St. Louis. Have day and night school and don't put up with any bs or your out. Day school two years normal school year hvac taught electrical, electronics, hydraulics plus heat, ac ,refrigeration, math and english.

 

[Number_35]

TSMC has several US problems... The skilled labor shortage is a biggie. This is nothing new; why do you think Silicon Valley pays so well?
We need to value education more, starting with better pay for instructors. Otherwise we hand tech to China.
Regarding construction workers, I say train them for free. Community Colleges are the answer. Fund them.

Culture is another problem. The Korean work ethic is on another level. Finally, the language barrier is a big problem.

No one said this would be easy.

However, South Korea's work ethic has led to a demographic crisis there.

I wonder where they'll be in another generation.

 

[alarmguy]

Detroit =
Let us not forget Apple wants to be in automobiles and possibly even their own Apple car

Maybe with a campus one of those two objectives will be met.

I do agree that seems like a strange place for Apple, but obviously there’s a game plan