Apple has announced that they will strengthen their investments, by incorporating new suppliers in the United States. This decision follows the $600 billion promise made by the firm to Donald Trump, who is still heavily dependent on their factories in India and China.
A promise is a promise. Apple has announced the expansion of its industrial program in the United States, by including new suppliers and staying committed to the investments promised to Donald Trump, who was eager to see the iPhone made in the U.S.
The goal of the American Manufacturing Program (AMP) is clear. The aim is to secure its supply chain in the midst of escalating trade tensions. The tech giant has also introduced four new partners for its American chain, namely Bosch, Cirrus Logic, TDK, and Qnity Electronics.
These partners will play a central role in manufacturing strategic components. TDK will produce sensors for iPhone cameras, Bosch will manufacture integrated circuits at a TSMC plant in Washington state, Cirrus Logic will develop semiconductors with GlobalFoundries in New York, and Qnity Electronics will provide materials and technologies for semiconductors and high-performance computing. Apple is also continuing collaborations with major players like TSMC in Arizona and GlobalFoundries, thereby strengthening its American production chain.
These announcements echo the promises Apple made to the Trump administration shortly after the U.S. presidential election. To avoid the tariffs proposed by Donald Trump, Apple’s CEO Tim Cook pledged to increase Apple’s investments in the U.S. to $600 billion. However, the “100% American” iPhone dreamt by the White House is still far from reality.
Context: Apple is expanding its investments in the U.S. to fulfill promises made to the Trump administration.
Fact Check: The commitment to manufacture the iPhone entirely in the U.S. is still a distant goal due to the complexity of Apple’s current global supply chain.
Difficult diversification
Apple’s supply chain includes nearly 200 suppliers spread across South Korea, Mexico, and China, a complex, global network that is challenging to replicate in the U.S. While most iPhones sold in the U.S. are currently assembled in India or China, Trump threatened to impose tariffs of at least 25% if production was not relocated. According to Bloomberg, Apple’s promised investments, though significant, are not enough to consider a complete transition to entirely American manufacturing. Moreover, assembling in the U.S. would require a concentration of skilled labor that is hard to gather, not to mention the flexibility needed to meet production peaks.
Heavily reliant on foreign sources, Apple is still seeking to diversify its production, sometimes looking more towards India or Vietnam than its American territory. The company states that its annual spending on Vietnamese suppliers has doubled since 2019, reaching nearly $16 billion (about 15 billion euros) in total over the period.
A visit by Apple’s CEO in 2024 also aligns with strengthening ties between the U.S. and Vietnam, focusing on semiconductors. Washington aims to reduce its dependency on China by diversifying its supply chains, while Hanoi seeks to enhance its technological capabilities and workforce.
In addition, major industry players like Intel, Nvidia, Amkor, and Hana Micron have already invested in the country, making it a strategic hub for assembling and testing electronic chips. It remains to be seen if the home of the iPhone and Mac will invest enough in the U.S. to fulfill its promises. But as the saying goes, a promise is only as good as the belief in it.
