Apple Inc. is allocating $430 billion to develop next-generation silicon and encourage 5G wireless innovation across nine U.S. states, therefore, increasing its U.S. investments by 20% over the next five years after overtaking its growth expectations during the pandemic.
The Cupertino, California-based company will create 20,000 new jobs in the U.S. and fund a new campus in North Carolina, the company said in a statement on Monday.
Apple’s original five-year investment goal of $350 billion set in 2018, has been outpaced over the past three years, the company said. But Apple has also been growing enormously. Its shares have seen an approximately 200% jump since its last investment plan was announced in January of 2018, and the company is now worth more than $2 trillion. The iPhone maker also said that it’s the biggest taxpayer in the U.S., having shelled out $45 billion in domestic corporate income taxes in the past five years.
Apple’s plans of increasing investment in the U.S. also come at a time when President Joe Biden, to help foot the bill for domestic infrastructure projects, has announced new plans to boost taxes on overseas profits. Apple along with other big tech companies disclosed more than $100 billion in profit outside the U.S. in their last fiscal years, making them prime targets of the president’s proposal.
“At this moment of recovery and rebuilding, Apple is doubling down on our commitment to U.S. innovation and manufacturing with a generational investment reaching communities across all 50 states,” said Apple’s Chief Executive Officer Tim Cook, according to Bloomberg.
Apple’s investment plan will include capital expenditures in the U.S., direct spending on U.S.-based suppliers, and other projects, including dozens of Apple TV+ productions across 20 states. In the Research Triangle area of North Carolina, Apple plans to invest more than $1 billion to build a new campus and engineering hub. The investment will create at least 3,000 new jobs in machine learning, software engineering, artificial intelligence, and other advanced fields.
Apple’s 2018 goal of creating 20,000 new jobs in the U.S. by 2023 is right on track, the company said, and it will grow its San Diego team to more than 5,000 employees by 2026, a 500% increase from its 2018 goal. Its engineering team in Boulder, Colorado, is being increased by 700 people while the company also adds hundreds of jobs in Massachusetts, Washington, Iowa, and Colorado. Employees are expected to start moving into Apple’s new $1 billion Austin campus next year.
As it grows, Apple’s commitment to environmentally sustainable ways of working does not change. Almost 60 of Apple’s U.S. sites are LEED-certified, the company said, while also being carbon neutral for all of its operations in the U.S. and around the world. Last year, it committed to be 100% carbon neutral for its entire supply chain and products by 2030.
Apple’s shares were little changed at $134.19 at 10:03 a.m. in New York.
