Apple to spend €355bn and increase jobs in US in next five years           

The company said it plans to spend $1bn alone as it builds a new campus and engineering hub in the research triangle area of North Carolina
Apple to spend €355bn and increase jobs in US in next five years           

Apple CEO Tim Cook: 'Apple is doubling down on our commitment to US innovation and manufacturing with a generational investment reaching communities across all 50 states.' Picture: Brooks Kraft/Apple Inc.

Apple said it will establish a new campus in North Carolina for 3,000 employees, expand its operations in several other American states, and develop the next-generation silicon, as it plans to boost spending in the US to $430bn (€355bn) in the next five years. 

Apple said it plans to spend $1bn alone as it builds a new campus and engineering hub in the research triangle area of North Carolina, with most of the jobs expected to focus on machine learning, artificial intelligence, software engineering, and other technology fields. It will be in addition to a $1bn campus in Austin, Texas, announced in 2019.

The iPhone maker said it would contribute $110m to help to build infrastructure such as broadband internet, roads, bridges, and public schools in 80 North Carolina counties.

Apple also said it expanded hiring targets at other US locations to hit a goal of 20,000 additional jobs by 2026, setting new goals for facilities in Colorado, Massachusetts, and Washington state.

In Apple's home state of California, the company said it will aim to hire 5,000 people in San Diego and 3,000 people in Culver City in the Los Angeles area.

Spending target

Apple also increased a US spending target to $430bn by 2026, up from a five-year goal of $350bn Apple set in 2018, and said it was on track to exceed.

The plan from Apple comes as tech giants including Apple and Microsoft disclosed over $100bn in profit outside the US in their last financial years, making them prime targets of US president Joe Biden’s proposals to boost taxes on earnings stashed overseas.

“At this moment of recovery and rebuilding, Apple is doubling down on our commitment to US innovation and manufacturing with a generational investment reaching communities across all 50 states,” said chief executive Tim Cook. 

The target includes Apple's US data centres, capital expenditures, and spending to create original television content in 20 states. It also includes spending with Apple's US-headquartered suppliers, though Apple has not said whether it applies only to goods made in those suppliers' US facilities. 

Apple has also been growing. Its shares have gained about 200% since its last investment plan was announced in January 2018, and the company is now worth more than $2trn. 

Biggest taxpayer

It said it is also the biggest taxpayer in the US, having paid out $45bn in domestic corporate income taxes in the past five years. Apple is on track to meet its 2018 goal of creating 20,000 new jobs in the US by 2023, the company said. 

The new commitment to job creation also includes growing its San Diego team to more than 5,000 employees by 2026, a 500% increase from its 2018 goal. 

Apple is also boosting its engineering team in Boulder, Colorado, by 700 people and adding hundreds of jobs in Massachusetts, Washington, Iowa, and Colorado. 

Apple said that as it grows, it is committed to doing so in an environmentally sustainable way. It said it is carbon neutral for all of its operations in the US and around the world, and last year committed to be 100% carbon neutral for its entire supply chain and products by 2030. 

  • Reuters and Bloomberg

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