A Total of 630 Trillion Won Invested in the US Over Four Years
Partial Exemption from Semiconductor Chip Tariffs
Draws a Line on Relocating iPhone Production Bases
US President Donald Trump and Apple CEO Tim Cook shake hands at the White House on the 6th (local time) after announcing an additional $100 billion investment in the US. Photo by EPA Yonhap News
Apple has announced an additional $100 billion (approximately 140 trillion won) investment in the US, aligning itself with the Trump administration's policy to "revitalize American manufacturing." With this package of incentives, Apple CEO Tim Cook is now able to pursue tariff relief without relocating overseas iPhone production bases.
On the 6th (local time), President Donald Trump announced Apple's US investment plan at the White House, with CEO Cook in attendance. President Trump praised the move, saying, "This will be an important step toward making iPhones sold in the US right here in America." CEO Cook prepared a commemorative gift featuring the Apple logo and President Trump's name engraved on a glass plaque set atop a 24K gold base.
With this investment, Apple's total US investment, which was previously announced as $500 billion in February, will increase by $100 billion (140 trillion won) to $600 billion (832 trillion won). Over the next four years, Apple plans to directly hire 20,000 people and strengthen its manufacturing, supply chain, and research and development (R&D) operations. The company intends to shift the production of core components, semiconductor packaging, and data center operations to the US, and will collaborate with 10 companies, including Samsung Electronics, in the process.
In return, Apple will receive partial exemptions from tariffs. On this day, President Trump also announced a policy to impose a 100% tariff on semiconductor chips produced overseas, but promised partial exemptions for Apple. According to US political media outlet Axios, Apple incurred $800 million (about 1 trillion won) in tariff costs last quarter. This quarter, the cost burden is expected to rise to $1.1 billion (about 1.5 trillion won).
More importantly, CEO Cook appears to have satisfied President Trump, who has long criticized Apple for not moving iPhone manufacturing bases from China and India to the US. On this day, CEO Cook drew a line, stating that "for the time being, iPhone assembly will continue to take place outside the US." Dan Ives, an analyst at Wedbush Securities, previously warned that producing iPhones in the US could push prices up to $3,500 and take several years to ramp up production.
In fact, the market responded positively to the announcement, with Apple shares closing up 5.09% at $213.25. Nancy Tengler, CEO of Laffer Tengler Investments, told CBS, "This is Apple's clever response to President Trump's demand for all iPhones to be made in the US," adding, "The stock price rose because CEO Cook broke his silence and made a conciliatory gesture."
Meanwhile, President Trump recently expressed confidence that tariffs would have a positive effect in ongoing trade negotiations with other countries. When asked about the outlook for future US economic growth, he said it would be "unprecedented," predicting that "more facilities will be built, factories will be constructed on a large scale, and especially in the case of artificial intelligence (AI), massive electricity will be required, leading to increased power demand."
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