Global Markets
Home›Global Markets›Trade & Tariffs›Apple plans $60 billion Texas investment to strengthen…
Apple plans $60 billion Texas investment to strengthen US supply chain
The company links the program to reducing exposure to potential tariff disruptions, after tariff refunds helped lift its gross margin by 2.0 points in its latest quarter.
Apple says it will invest $60 billion in Texas as part of a broader effort to strengthen its US supply chain and protect profit margins against potential tariff disruptions, according to LiveMint Markets.
The move comes as Tim Cook prepares to hand leadership to John Ternus on September 1, with Ternus set to focus on Apple’s products and services while the company works to make manufacturing more resilient.
Apple’s Texas plan is tied to its four-year commitment of $600 billion toward US manufacturing and supply-chain activities announced last year. The company is not planning to make iPhones domestically, but it intends to produce the Mac mini at a new Houston facility that will also manufacture and ship advanced artificial intelligence servers.
Apple also cited its manufacturing and supply-chain strategy for silicon and wireless technologies, including a long-term agreement with Broadcom expected to be worth more than $30 billion. In its fiscal Q3 results, Apple reported a 50.1% gross margin, with tariff refunds accounting for 2.0 percentage points, and diluted earnings per share rising 29.0% to $2.02 including an $0.11 contribution from tariff refunds that it plans to reinvest in the US supply chain.