Apple to inject $1 billion to set up \"advanced manufacturing\" jobs

Apple has reportedly been planning to create a $1 billion fund so as to invest in “advanced manufacturing” jobs in the United States. In an interview with CNBC, Mad Money host Jim Cramer, Tim Cook said that Apple plans to announce its first investment later this month.

Cook has hoped that the new fund will create a “ripple effect” in the job market, with the manufacturing jobs created directly by the new fund will also create service jobs needed to support them.

“Advanced manufacturing” is an umbrella term which encompasses creating technologically advanced products or improving the processes by which those products are created. The announcement was accompanied by a new “job creation” page on Apple’s site, which highlights the 2,000,000 jobs Apple directly and indirectly supports in the United States.

$1 billion is however a small portion of the roughly $250 billion cash pile that Apple is sitting on, but the symbolism of the move is important of the jobs that the action might create.

President Donald Trump’s promises to move up American manufacturing were a major component of his campaign during the presidential elections with him pledging to “get Apple to start building their damn computers and things in this country, instead of other countries.”

The complex network of adjoining benefits is what keeps Apple’s major portion of the manufacturing in China makes it unlikely Apple will start manufacturing in America. But a $1 billion investment will give Apple something to leverage if Trump brings up manufacturing again. Intel also took a similar step, pledging to complete a factory project which was started during the Obama administration in 2011.

In return, Apple will benefit from Trump’s proposed tax plan, which is pointing towards lowering the tax rate to 15 per cent and implementing a “one-time” tax on profits held overseas; about 93 per cent of Apple’s cash and liquid assets is held outside of United States.

(source)