Some years ago, while performing an audit of a company in Shanghai, my colleagues and I were handed an interesting bit of information by our driver. The first morning, driving us from the hotel to the plant, he pointed out a big, impressive building. "That's where they make iPhones," he said. Then he pointed out another big, impressive building. "That's where they make fake iPhones. Same guy, he owns both buildings."
I never bothered to verify if that was true or not; for one thing, I've always been an Android guy, and for another, I was in a different line of work back then. But too much American tech is made in China; that's changing now.
Apple is now making a pricey new bet on American manufacturing, adding several new tech companies to its American Manufacturing Program. The move is expected to cost Apple $400 million and will involve manufacturing critical components in the United States for the first time.
The technology giant plans to support domestic partnerships with Bosch, Qnity Electronics and others. Its agreement with TDK will bring iPhone sensor production to the U.S. for the first time.
Dive Brief:
- Apple recently added four semiconductor companies to its American Manufacturing Program, including Bosch, Cirrus Logic, TDK and Qnity Electronics.
- The Cupertino, California-based company on Thursday said it plans to spend $400 million through 2030 in support of its new partners as they produce materials and components in the United States for Apple products sold around the world.
- As part of the expansion, longtime Apple supplier TDK has agreed to make iPhone sensors in the U.S. for the first time. The advanced sensors support camera stabilization, among other features. Apple is also working with Bosch on producing circuits that support crash detection, activity tracking and elevation.
That's interesting news. It's not yet clear as to the number of new jobs (if any) this will create.
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But this is also part of a larger effort by Apple to reshore manufacturing, and it's about time.
Apple’s expansion is part of a larger $600 billion commitment to U.S. manufacturing and innovation. It adds to a growing number of companies participating in Apple’s American Manufacturing Program as uncertainty fueled by tariffs and international conflict spur domestic investments.
Initial members such as Amkor, GlobalWafers and Corning are already starting to implement their plans with Apple. The technology giant has redirected all of its iPhone and Apple Watch cover glass production to Corning’s Harrodsburg, Kentucky, facility. It also recently announced plans to bring Mac mini production to Houston later this year.
This is, as someone once said, a big freakin' deal. The Trump administration has been pushing to bring manufacturing back to the United States, and this would seem to present a considerable success.
More to the point, this isn't just about iPhones. There's a national security angle involved. The larger effort to reshore, especially in the tech sector, makes America most secure; for too long, too many high-tech products and components have been made overseas, many in China - a country which isn't exactly friendly.
Now, more and more of these manufacturing efforts are coming home. That's an unmitigated good thing.
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