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Apple Plans Houston Plant to Produce AI Servers

Feb 25, 2025 - enr.com
Apple Inc. announced plans to produce servers at a new 250,000-square-foot manufacturing plant in Houston, Texas, as part of a $500 billion investment in the U.S. over the next four years. The facility will support Apple's Intelligence and Private Cloud Compute AI services and is set to open next year. Although Apple did not disclose its manufacturing partner, reports suggest it is Foxconn, which recently acquired a site in Houston. Additionally, Apple is doubling its "Advanced Manufacturing Fund" to $10 billion, including a commitment to purchase materials from a TSMC plant in Arizona, where Apple is the largest customer.

Apple's investment also includes expanding data center capacity in North Carolina, Oregon, Arizona, and Nevada. The announcement comes amid new tariffs on Chinese imports, where Apple conducts much of its manufacturing. The company sources silicon wafers from 24 U.S. plants, including Texas Instruments' fab in Lehi, Utah. TSMC, supported by the CHIPS and Science Act, plans to build three fabs in Arizona, with Apple as a key customer. The move highlights Apple's commitment to American manufacturing and infrastructure expansion.

Key takeaways:

  • Apple plans to produce servers at a new manufacturing plant in Houston, Texas, as part of a $500 billion investment in the U.S. over the next four years.
  • The 250,000-sq-ft facility will manufacture servers for Apple's AI services and is scheduled to open next year.
  • Apple is doubling its "Advanced Manufacturing Fund" from $5 billion to $10 billion, including a commitment to purchase material from a TSMC fabrication plant in Arizona.
  • Apple plans to expand its data center capacity in North Carolina, Oregon, Arizona, and Nevada.
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