Apple has announced it is investing $1bn into advanced manufacturing in the US.
CEO Tim Cook said he hoped the investment would be “the ripple in the pond” that created both manufacturing and service sector jobs in America.
“I’m proud to tell you that we’re creating an advanced manufacturing fund. We’re initially putting $1bn in the fund… By doing that we can be the ripple in the pond because if we can create many manufacturing jobs, those manufacturing jobs create many jobs around them,” Cook told CNBC.
The first investment from the fund would be announced later this month, said Cook.
The fund resonates with president Donald Trump’s America First agenda and makes Apple the latest firm to announce plans to increase jobs in the US since Trump came to power.
As well as a number of automotive manufacturers that have re-shored manufacturing, Foxconn – a major Apple supplier – is reportedly considering investing $7bn in a screen manufacturing plant in the US. Cook, however, made no mention of re-shoring production of Apple phones or computers, something Trump had previously called for during his election campaign.
In the interview Cook also highlighted Apple’s US supply chain spend. He said the firm spent over $50bn in the country last year, citing Corning glass and 3M adhesives as examples of suppliers. “We buy a lot from US suppliers... we manufacture here, our suppliers manufacture here,” he said.
Apple claims it has already created 2m jobs in the US, including 450,000 through its supply chain and 1.53m through its App Store platform. “This doesn’t include the multiplier effect by the way, which would make it a ton more,” said Cook.
On Apple’s relationship with president Trump, Cook said: “With each administration in every country in the world there are things you disagree and things you agree. You look to find common ground and try to influence the things you don’t.”
“If you don’t show up, I think that’s the worse scenario,” he added.
Apple, which has just published its second quarter results, is reported to be sitting on cash reserves of $239bn.
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