US President Trump Announces Apple Investment Increase
US President Trump announced this morning on August 7 at the White House, alongside Apple CEO Tim Cook, that Apple will invest an additional $100 billion on top of its original commitment of $500 billion to the United States. At the same time, Trump indicated that a 100% tariff will be imposed on imported chips in the future; however, companies that establish manufacturing facilities in the US or commit to investment will enjoy tax exemptions.
100% Tariff on Chips, Tax Exemption for US Investment
Trump stated that a 100% tariff will be imposed on all imported chips in the future, but as long as companies have manufacturing facilities in the US, are currently working in the US, or have started construction even if they have not yet begun mass production, they will enjoy tax exemptions. He specifically mentioned that Apple is a “qualified” representative.
This is a “narrow escape” for Apple. There were initial concerns that products such as iPhone, Mac, and iPad would be included on the tax list, resulting in increased operating costs. However, Trump has temporarily excluded consumer electronic products like phones, computers, and monitors, indicating that they will be addressed separately, with relevant tax rates to be announced next week. Apple CEO Tim Cook has actively sought tariff exemptions from the government in the past, and this successful negotiation represents a significant advantage for the company.
Apple’s $100 Billion Investment to Expand Manufacturing in the US
In line with Trump’s heavy tax policy on chips, Apple has also announced the latest wave of domestic investment in the US, amounting to $100 billion, and will expand production with several supply chain partners in the US, including Corning, Applied Materials, and Texas Instruments.
This $100 billion investment is an increase on top of the previously committed $500 billion, bringing the total investment amount to $600 billion. Although the scale is substantial, previous reports indicate that many of these investment projects were planned before the 2025 US presidential election, such as the Texas server factory and Michigan Supplier Academy. However, the investment amounts publicly announced by companies often differ from the actual implementation, and whether job opportunities will significantly increase remains to be seen.
Will TSMC and Nvidia Enjoy Tariff Exemptions? Challenges in Asian Supply Chains
Although Trump’s tax exemption policy provides incentives for US companies, there is also curiosity about which companies will truly benefit from the exemptions. Currently, companies like TSMC, which has a factory in Arizona, Samsung, which is expanding its Texas plant, and Intel, which still has factories in multiple states in the US, need to have the standards for tax exemption clarified by officials.
Many companies, while establishing factories in the US, still primarily rely on production in Asia. For instance, Nvidia and AMD both depend on TSMC and Samsung for manufacturing, making it difficult to fully transfer supply chains in the short term.
On the other hand, although Apple is investing in the US, most of its production lines are still distributed in Asia, with iPhones coming from India and iPads, Macs, and Apple Watches mainly imported from Vietnam. Both countries have also been included in Trump’s tariff targets, with the US planning to impose a 50% tariff on India in two phases, and Apple products imported from Vietnam already subject to a 20% tariff.
Trump previously even stated that if Apple does not bring its iPhone production lines back to the US, a 25% tariff will be imposed. Cook responded that final assembly will remain overseas for a while, but several components have already returned to be manufactured in the US.
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