Tag Archives: Manufacturing

Trump Reveals Apple’s $100 Billion Investment Plan for U.S. Manufacturing

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Donald Trump praised Apple for its pledge to boost its investment in U.S. manufacturing by an additional $100 billion over the next four years.

Apple’s commitment to increasing its domestic investments comes as it seeks to circumvent the tariffs threatened by Trump. During a May revenue call, CEO Tim Cook cautioned that tariffs could lead to losses of up to $900 million in that fiscal quarter alone.

The president lauded the tech giant after Cook presented him with a U.S.-made souvenir featuring a 24-carat gold base in the Oval Office on Wednesday. He told reporters, “Companies like Apple, they’re home. This is a vital step toward ensuring that iPhones sold in the U.S. are also manufactured here.”

Cook mentioned that many components of the iPhone, such as glass, semiconductors, and Face ID modules, are already produced domestically. However, he noted that final assembly will remain overseas for the time being. Previously, he stated that this new investment would involve collaboration with ten companies across the U.S. that manufacture components for Apple products.


Apple previously announced a plan to invest $500 million domestically, which has now increased to $600 million. The company also intends to hire 20,000 workers in the U.S. over the next four years.

Recently, Trump has vocally criticized tech companies, with Cook pursuing a strategy to shift iPhone production to India to evade tariffs imposed by the Republican administration on China. On the same day the White House made its announcement, Trump raised U.S. tariffs on India from 25% to 50%.

While in Qatar earlier this year, Trump mentioned a “slight problem” with Apple during a conversation with Cook, indicating he didn’t want production to move to India.

India has incurred the president’s ire lately as he ordered an additional 25% tariff on the country, citing its use of Russian oil. This new import tax, set to be implemented over 21 days, could elevate total tariffs on Indian goods to 50%.

According to Reuters, Apple tried to preempt Indian tariffs in April by exporting as many as 1.5 million iPhones from the country to the U.S.

The iPhone is composed of parts sourced from multiple countries, with final assembly primarily taking place in China, making the company particularly vulnerable to Trump’s tariffs. A shift of production to the U.S. could significantly increase costs, as many analysts regard American-made iPhones as a pipe dream while Apple navigates the uncertain waters of Trump’s trade war.

Apple’s announcement of increased investment aims to enhance supply chains and advanced manufacturing capabilities within the United States.

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This latest pledge from Apple comes shortly after the company signed a $500 million contract with MP Materials, which operates the only rare earth mine in the U.S. This deal allows MP Materials to expand its Texas facility and utilize recycled materials to manufacture magnets vital for the iPhone.

During the recent investor call, Cook highlighted the various components produced in the U.S., such as glass displays and facial recognition modules, and indicated that there are plans to scale up production for additional components within the country.

“We’re doing more here, with about 1.9 billion chips now being produced in the U.S. We’re making progress,” Cook stated last week without going into further details.

Despite investors’ concerns regarding impending tariffs and a slowdown in adopting artificial intelligence, Apple’s latest revenue report indicates strong iPhone sales, surpassing Wall Street expectations year over year. Following news of Trump’s announcement, Apple’s stock, which had dropped significantly earlier this year, jumped over 5% on Wednesday.

Source: www.theguardian.com

Pfizer CEO: Tariff Uncertainty Hindering US Investment in Manufacturing and R&D

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Pfizer CEO Albert Bourla remarked on Tuesday that uncertainties surrounding President Donald Trump’s Drug Tariff are hindering the company’s ability to pursue further investments in U.S. manufacturing and R&D.

During the company’s Q1 Revenue Call, Bourla responded to inquiries about Pfizer’s expectations regarding tariff negotiations, emphasizing the need for increased investments in the U.S.

“If there’s a guarantee of no tariffs… significant investments could be made in both R&D and manufacturing here,” Bourla stated, emphasizing the company’s desire for “certainty.”

“In times of uncertainty, everyone is focused on minimizing costs, as we are, leading to frugal investment practices. We are poised to allocate funds; that’s what I hope to see,” Bourla commented.

He highlighted that the current tax climate, which previously favored overseas manufacturing, is “undergoing significant changes” with the establishment of a global minimum tax around 15%. Bourla expressed concerns that these changes alone do not necessarily make the U.S. a more appealing investment destination without added tariff incentives or clarity.

“I spoke with [Trump], and I believe he aims to modify the existing tax framework, particularly for domestically produced goods,” Bourla said, indicating that further reductions could incentivize U.S. manufacturing.

In contrast to other companies navigating shifting trade policies, Pfizer did not alter its full-year forecast on Tuesday. Nevertheless, the company noted in a revenue statement that its guidance “currently does not account for any potential impacts related to future tariffs or trade policy changes, which remain unpredictable.”

In the revenue call, Pfizer executives mentioned that the guidance reflects $150 million in expenses attributed to Trump’s existing tariffs.

“The guidance we didn’t address today includes some of the current tariffs,” stated Pfizer CFO Dave Denton over the phone.

“We believe we are still trending towards the upper end of the guidance range, even with these costs this year,” he added.

Source: www.nbcnews.com

Nvidia Invests Billions in US Manufacturing and CEO

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The CEO of Nvidia, the largest computer chip maker in the world, has committed to investing “tens of billions” of dollars in manufacturing semiconductors and electronics in the United States over the next four years.

Jensen Huang’s remarks indicate a shift in supply chains of California-based AI chip makers away from Asia due to the uncertain tariff threats from Donald Trump.

In an interview with the Financial Times, the co-founder and CEO of Nvidia stated, “Overall, over the next four years, we plan to invest around $50 billion in electronics manufacturing. I believe we can easily surpass hundreds of billions produced here in the US.”

This announcement highlights the impact of Trump’s “America First” policy on business investments, pushing even companies like Nvidia, the most valuable in the world, to reconsider their global presence.

Founded in 1993, the Silicon Valley company has been driving the AI market boom, leading to its staggering valuation of $2.9 trillion. However, other major US tech giants, such as Apple, have become reliant on chip manufacturers in Taiwan, like TSMC and Foxconn.

Huang expressed confidence in Nvidia’s ability to navigate any challenges in Taiwan, a region prone to earthquakes. “We are prepared to manufacture in the US. Our supply chain is fully diversified,” he added.

He also mentioned the potential for the Trump administration to bolster the US AI industry amidst growing competition with China.

Huang criticized the success of Chinese tech giant Huawei, calling it “the most formidable technology company in China.” He argued that efforts to contain Chinese companies have been inadequate, as evidenced by Huawei’s continued dominance.

Having government support for the industry and addressing energy consumption in data centers is a significant boost for American AI, according to Huang.

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The recent $100 million investment in the US by TSMC, a Taiwanese semiconductor company, supports onshore manufacturing efforts. This move ensures that Nvidia’s Blackwell chips are produced in the US, enhancing supply chain resilience.

Source: www.theguardian.com

Ohio Rust Belt Manufacturing Hub’s Dream Hindered by Delay and Uncertainty

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Intel recently moved a large metal structure 140 miles north to one of its semiconductor plants in Ohio, an operation detailed minute by minute here.

Local school bus schedules were carefully avoided during the transportation process. The cargo, measuring up to three-quarters of the length of a soccer field, was moved by a team of White Crane Truck operators.

Intel meticulously planned 37 deliveries over the past 11 months, culminating in the final Superroad landing at the Greenfield site last month. This marked a significant milestone for the company, which has invested heavily in the project since its announcement in September 2022.

However, Intel’s success in logistics is juxtaposed with its struggles as a company. Stock prices plummeted by 60% last year, and competition with companies like Nvidia has intensified with the Advanced 18A Artificial Intelligence Chip.

Rumors of potential dissolution and acquisition by rivals have further exacerbated Intel’s instability in the industry.

The delays in construction have also raised concerns among Ohio residents and community leaders, who were initially optimistic about the economic prospects brought by Intel’s manufacturing plants. The delays have pushed back the timeline for completion, causing frustration and uncertainty in the region.

Despite the setbacks, Intel secured funding under the Chips Act and remains committed to the project. However, the landscape of the semiconductor industry continues to evolve, with competitors like Taiwan Semiconductor Manufacturing Co (TSMC) making significant investments.

The delays have also impacted local residents, some of whom have seen their properties affected by the construction. Concerns about the future of the project linger as Intel faces challenges in meeting critical deadlines and retaining funding.

The uncertainty surrounding Intel’s Ohio project highlights the complexities of navigating the rapidly changing semiconductor industry, where competition and market demands are reshaping the landscape.

Source: www.theguardian.com

Utilize Arduino to investigate Indian manufacturing and curb the sale of counterfeit products

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Arduino is considering manufacturing in India. The startup, best known for its open source microcontroller boards, wants to limit the rise in counterfeit boards and meet growing demand from India’s youth.

The Italian company is currently exploring partnerships with electronic manufacturing services (EMS) companies in South Asia to start local production as early as the first quarter of next year, CEO Fabio Violante said in a virtual interview. told TechCrunch. This marks a significant change from the company’s current practice of producing all its boards in Italy.

India is the largest market for Arduino IDE downloads with 3.2 million. The country also has local branches of global Arduino distributors such as DigiKey, Mouser Electronics, and Avnet. However, India’s contribution to the customer base is currently less than 1%. Violante believes that her fake Arduino board is the main reason for this discrepancy.

“The strange situation for us in India is that even though the community is very large and the user base of the Arduino IDE is very large, we have no original product to sell to the Indian market, especially because people can’t afford the original product. “The amount is very small because finished electronic products are subject to high import duties,” he said. “So people mainly buy substitute products or clones, and in some cases those counterfeit products are made in China.”

Arduino clones are currently available for less than half the price of the original board. The latter also includes import duties. Therefore, by starting local manufacturing, Arduino will be selling its boards in India at the same low prices as their Chinese counterparts.

However, the problem with cloned boards is not limited to India, Biollante acknowledged, adding that the company currently sells one original board for every five to six clones in the market.

“This is difficult because we are open source and we make money by selling our original hardware,” he said. “So clones and counterfeits are a big part of the market.”

Arduino is trying to address the problem of counterfeit boards around the world by making its hardware more sophisticated and harder to counterfeit.

“Continuous innovation gives us a competitive edge,” Biollante said. “[The new boards] It uses a more sophisticated microcontroller, a more sophisticated power section that is not as easy to copy and paste. ”

The executive was in New Delhi last week to attend an investor-focused event organized by state agency Invest India, where he met with government officials and members of parliament, including India’s Minister of State for Electronics and Information Technology Rajeev Chandrasekhar. did.

To compete with China, India has been offering cashbacks and subsidies to global manufacturers to become production hubs. As a result, the country’s domestic electronics manufacturing increased by more than 111% to $99 billion in fiscal year 2022-23, from $47 billion in 2017-18, according to government data shared in parliament last week. However, most of this is due to growth in local mobile phone manufacturing. The country is already the second largest manufacturer of mobile phones, with Indian-made handsets accounting for more than 99% of domestic mobile phone sales. The government wants to expand local production not just for mobile phone assembly, but also for components including displays and semiconductors.

Violante told TechCrunch that Arduino is currently considering both large international EMS companies and small local companies in India that specialize in manufacturing electronic circuit boards and development boards.

The executive indicated that the company may initially consider making a $27 product. Uno R4 WiFi It was launched globally earlier this year. It aims to appeal to the masses with specifications such as a 32-bit Cortex M4 processor, 32KB RAM, and 256KB flash storage. However, over time, it may start producing the enterprise-oriented Pro series model that was launched last year.

Violante said Arduino is also looking to work with educational institutions in India to increase brand awareness among students and become part of local curricula. Additionally, partnerships with research institutions help the company connect with companies that collaborate with those institutions. The company already has a partnership with Tata Consultancy Services (TCS) in the US, and plans to expand that partnership in India as well. Furthermore, Arduino specifically plans to cater to local demand, and its initial start in the country means that, unlike many other startups, it does not rely on China for manufacturing, so over time it will grow locally. There is a possibility that the company will move towards exporting the manufactured boards to other countries.

Source: techcrunch.com