Apple Bets Big on Texas in Final Major Act as CEO

Apple's CEO Tim Cook has announced his final major act as leader of the company in a $60 billion bet on Texas, where Apple will partner with Foxconn to build a new manufacturing facility. The facility will host Mac mini production and a manufacturing school, according to Cook.

Cook stood alongside Commerce Secretary Howard Lutnick at the announcement, which marks one of his final major appearances as CEO before he hands over the reins to John Ternus on September 1. Cook will then become Executive Chairman, a role that will allow him to focus on diplomacy with Washington and Beijing.

The $60 billion figure is not entirely Apple's investment, however. Foxconn is making the capital investment at the Houston site, while Apple has committed to buying the output. This arrangement preserves Apple's balance-sheet flexibility and allows it to hold onto its $147 billion cash position for buybacks.

Cook's announcement reflects his years of balancing act between Asian supply chain flexibility and diplomatic pressures from Washington and Beijing. He has been testing Chinese memory maker YMTC for Apple's Macs and iPhones, a supplier that Commerce could ultimately restrict.