Apple has announced that it will strengthen its investments by including new suppliers in the United States. This decision comes after the firm’s pledge of $600 billion in the US made by Donald Trump, who is still heavily reliant on its factories in India and China.
A promise is a promise. Apple has announced the expansion of its industrial program in the United States, including new suppliers and maintaining investments in line with Donald Trump’s desire to see the iPhone made in the US.
The goal of the American Manufacturing Program (AMP) is clear. The aim is to secure its supply chain amid increasing trade tensions. Apple has also introduced four new partners for its American chain: Bosch, Cirrus Logic, TDK, and Qnity Electronics.
These partners will play a key role in manufacturing strategic components. TDK will produce sensors for iPhone cameras, Bosch will manufacture integrated circuits in a TSMC factory in Washington state, Cirrus Logic will develop semiconductors with GlobalFoundries in New York, and Qnity Electronics will provide materials and technologies for semiconductors and high-performance computing. Apple continues its collaborations with major players like TSMC in Arizona and GlobalFoundries, strengthening its American production chain.
These announcements echo the promises Apple made to the Trump administration shortly after the president’s election. To avoid the tariffs threatened by Donald Trump, Apple’s CEO Tim Cook promised to increase Apple’s investments in the US to $600 billion. However, the “100% American” iPhone dreamt of by the White House is far from a reality.
Context: Apple’s decision to involve new suppliers in the US is part of efforts to fulfill promises made to the Trump administration regarding investments in the country.
Fact Check: Apple’s plan to make the iPhone completely in the US faces challenges due to its complex global supply chain, with most iPhones currently assembled in India and China.
Difficult Diversification
Apple’s supply chain includes nearly 200 suppliers across South Korea, Mexico, and China, a complex global network challenging to reproduce in the US. While most iPhones sold in the US are currently assembled in India or China, Trump threatened in April to impose tariffs of at least 25% if production was not relocated. According to Bloomberg, Apple’s promised investments, while significant, may not be enough for a complete shift to entirely American manufacturing. Additionally, assembling in the US would require a concentration of skilled labor that is difficult to achieve, not to mention the flexibility needed to meet production demands.
Dependent on foreign sources, Apple seeks to diversify its production, sometimes turning more towards India or Vietnam than its own American territory. The company states that its annual spending with Vietnamese suppliers has doubled since 2019, reaching nearly $16 billion in total over the period.
In 2024, Apple’s CEO’s visit also aligns with strengthening ties between the US and Vietnam, focusing on semiconductors. Washington aims to reduce its dependence on China by diversifying its supply chains, while Hanoi seeks to enhance its technological capabilities and workforce.
Additionally, major industry players like Intel, Nvidia, Amkor, and Hana Micron have already invested in Vietnam, making it a strategic hub for assembling and testing electronic chips. It remains to be seen if the home of the iPhone and Mac will invest enough in the US to fulfill its promises. But as the saying goes, a promise is only valuable to those who believe in it.
