Apple Invests $60 Billion in Texas Supply Chain Amid Tariff Concerns

Apple is investing $60 billion in its Texas supply chain as part of a broader four-year commitment to spend $600 billion on manufacturing and supply-chain activities in the US. The move aims to reduce Apple's exposure to potential tariff disruptions while protecting profit margins and earnings.

The investment forms part of Apple's efforts to strengthen its US supply chain, with a new facility in Houston set to produce the Mac mini and advanced artificial intelligence servers. A long-term agreement has also been entered into with Broadcom to develop and manufacture custom silicon components and advanced wireless technologies worth over $30 billion.

Cook said on the company's fiscal Q3 earnings call that this marks 'our largest-ever American manufacturing program commitment' and an important step forward in building an end-to-end silicon supply chain in the US. The company is not planning to manufacture iPhones domestically, but increasing the proportion of its supply chain sourced domestically could give Apple greater flexibility as tariff and trade policies evolve.