Apple is gearing up to build another corporate campus in a yet-to-be-announced American city and increase its workforce across the U.S. by 20,000 new employees over the next five years, the iPhone maker said Wednesday.
The news comes packaged with Apple’s announcement Wednesday that it plans to “invest,” or generate, more than $350 billion for the U.S. economy between now and the end of 2023. The Cupertino-based company did not detail how it came up with that dollar figure.
Apple says the economic benefit will come through increased spending in manufacturing, capital expenditures, hiring and company tax payments, including about $38 billion in repatriation tax payments as part of recent changes to tax laws.
“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the U.S. economy,” Apple CEO Tim Cook said in a statement Wednesday. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”
Apple has a significant data center footprint in Mesa along with several retail Apple Stores throughout the Valley.
In an interview with the Wall Street Journal last year, President Donald Trumpsaid he’d had conversations with Apple’s Tim Cook in which the CEO promised that the iPhone maker would build “three big plants, beautiful plants” in the U.S.
“I spoke to [Mr. Cook], he’s promised me three big plants — big, big, big,” Trump told the Journal in July 2017. “I said you know, Tim, unless you start building your plants in this country, I won’t consider my administration an economic success. He called me, and he said they are going forward.”
The president didn’t elaborate on where those plants would be built or when it would happen, and Apple didn’t provide further comment to the press. In its release Wednesday, the company said it would announce the location of its next campus later this year and noted that the facility will initially serve as a technical support hub for customers.
Shortly after the announcement by Trump, Foxconn, Apple’s main manufacturing partner, said it would open a $10 billion plant in Wisconsin that will eventually employ more than 13,000 jobs — a victory the President touted as a sign of his ability to get companies to reinvest in U.S. manufacturing.
In exchange, the Taiwanese electronics manufacturing giant is getting a $3 billion taxpayer-funded incentive and subsidies package. An analysis has shown the state won’t break even on its Foxconn investment until 2042.
Apple employs 84,000 employees across the U.S., meaning the tech giant plans to blow past the 100,000-employee mark in the next five years. It’s the largest technology employer in Silicon Valley, with about 25,000 employees in the region. No. 2 is Google and parent company Alphabet, with about 20,000 employees.
It’s still unclear exactly how Apple came up with its $350 billion figure, but it appears to be include investments and “direct contributions” to the economy and well as its estimated economic impact of the new jobs and campus.