Trump says Apple will build plants in the United States. He's wrong


In an interview with The Wall Street Journal, the 45 President of the U.S. said that he had spoken to Apple CEO Tim Cook, who committed to building "three big plants, handsome plants".

Trump said this during an interview with the Wall Street Journal on Tuesday.

"He's promised me three big plants - big, big, big", said the president.

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Cook said in February that Apple spent $50 billion in 2016 with its USA suppliers.

If Trump's statement is correct, that'd be a big investment on Apple's behalf and a significant change of pace. The company maintains just one factory in Ireland - a tax haven - making it unlikely Apple will independently bring three plants to the U.S. However, it can encourage its suppliers to do so. Foxconn, a noteworthy Apple provider, is additionally said to be arranging its first U.S. industrial facility. That factory may well produce products for Apple, though it wouldn't be an Apple-owned factory. Apple isn't alone in this as many other companies tend to outsource production and manufacturing to China and India because labor is cheaper than back home, which means higher profit margins.

Cook said in May that Apple planned to create a US$1 billion (RM4.28 billion) fund to invest in United States companies that perform advanced manufacturing. Apple does have middlemen in US facilities in Austin, Texas, and Fremont, Calif., which do assembly of a small number of Mac computers.

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Apple supplier Corning told CNBC last week that it would "immediately" invest $500 million and create 1,000 new jobs in the United States, but those jobs were related to medical devices.

However the company relies primarily on contractors, such as Foxconn, to assemble the iPhone and iPad and only owns one small manufacturing facility in Cork, Ireland. "The Journal reported on Monday that an announcement on a plant in Wisconsin could come sometime this week".

As such, there is no information when or where the new plants would be coming up, or which of Apple products they would be manufacturing.

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