Apple begins US AI server production in Houston factory

Apple announced that it has begun shipping advanced AI servers from its factory in Houston, Texas, on Thursday, October 23. According to the Cupertino-based tech company, these servers play a crucial role in their pledge to invest approximately $600 billion in the US, particularly in advanced manufacturing, suppliers, and other initiatives.

Following this move, US President Donald Trump expressed his pleasure with Apple’s decision, urging the tech giant and other tech firms to expand their production within the United States.

Apple pledges to make significant investments in the US 

Apple began implementing its plan to produce AI servers at its factory in Houston, Texas, earlier this year. Sources close to the situation mentioned that the tech giant first shared its intention to create US servers in February this year before making significant moves later.

Regarding the tech company’s triumph in the AI ecosystem, Apple Chief Operating Officer Sabih Khan commented that these servers will support the firm’s Apple Intelligence and Private Cloud Compute services, which are scheduled to be announced this week. Currently, Apple is utilizing its own silicon technology in its Apple Intelligence servers, Khan said.

The Chief Operating Officer’s remarks came after he acknowledged, “Our teams have done an excellent job accelerating the work to get the new Houston factory operating ahead of schedule, and we plan to keep expanding the facility to enhance production next year.”

Meanwhile, when Apple was implementing its plan, the tech giant viewed the Houston factory as an opportunity for several individuals to secure jobs. According to the tech company, the factory was set to create thousands of jobs. Notably, Apple servers were previously made overseas.

Apple CEO Tim Cook took the initiative to meet with Trump in August to demonstrate the company’s commitment to further invest in the US. At this time, Cook promised the president that the tech giant would invest particularly in semiconductor firms via a program known as the American Manufacturing Program. 

Apart from the pledge, the CEO also presented Trump with a gift from Corning Glass, produced in the US. Interestingly, the Corning glass is used in iPhones and Apple Watches. Additionally, the tech firm introduced a manufacturing academy in partnership with Michigan State in July. 

Industry experts weighed in on the discussion, pointing out that although Trump has recently praised Cook and acknowledged Apple for its commitment to invest in the US, the president has often called on the tech giant to produce its iPhones in the country. Therefore, according to them, this shift will likely take years and be expensive.

Apple admits to strongly supporting the US manufacturing sector

The Trump administration had earlier requested tariffs that could affect Apple’s operations. However, after several considerations, they decided to cancel them. 

In response to this action, Apple revealed that it would import computers and phones from China, India, and Vietnam to the United States. This was confirmed after Cook stated that Apple strongly supports the US’s manufacturing sector by partnering with domestic semiconductor suppliers.

He further explained that Apple’s investment and expertise play a role in developing chips entirely made and packaged in the country.

“You can add a lot by making it global and then connecting the entire supply chain for semiconductors,” Cook added. Afterwards, the CEO acknowledged that he could not emphasize enough the crucial role the US semiconductor sector plays in their operation and the significant contribution it will make to their efforts.

Despite managing to keep Trump’s tariffs off its back, Apple is still facing high costs, and this time it’s landing directly on customers. As per the briefing document obtained, CEO Tim Cook offered President Donald Trump a $100 billion sweetener to protect Apple’s supply chain.

In exchange, Trump spared Apple from semiconductor tariffs that could have doubled the price of chips. Last month, Tim Cook presented Trump with a gold-and-glass plaque before reporters, thanking him for “putting American innovation and jobs front and center.”

The gesture marked Apple’s expanded $600 billion US investment pledge over a five-year period. Yet behind the show of goodwill, the company is quietly preparing to raise iPhone prices — and it’s no coincidence.

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