Tim Cook Thanks Trump for his Focus on Semiconductors
Apple CEO Tim Cook recently praised President Trump's emphasis on domestic semiconductor manufacturing during a virtual appearance marking Trump's first 100 days in office. Cook highlighted Apple's commitment to invest $500 billion in the US over the next four years, focusing on AI, silicon engineering, and expanding manufacturing facilities across multiple states.
Mitigating Impact of New Tariffs
This investment aligns with Apple's strategy to mitigate the impact of new tariffs, which could cost the company $900 million this quarter. To reduce reliance on China, Apple is shifting iPhone production to India and other products to Vietnam, though this move may increase production costs by up to 8%.
CHIPS Act and Political Engagement
Cook's collaboration with the Trump administration includes a personal $1 million donation to Trump's inauguration fund and meetings at Mar-a-Lago. While Cook publicly supports Trump's initiatives, it's noteworthy that Apple's domestic manufacturing efforts were also influenced by the CHIPS Act signed by former President Biden, which facilitated investments like TSMC's Arizona plant.