Apple Partners With Foxconn For AI Server Factory in Texas

Apple has announced plans to establish a large factory in Texas, specifically a quarter-million-square-foot facility, by the year 2026. This new factory will focus on manufacturing artificial intelligence servers.

To bring this project to life, Apple has partnered with Foxconn, and the factory will be located in Houston, Texas. Here, Apple will assemble servers that will ultimately be used in data centers to support its Apple Intelligence platform. At present, these servers are produced overseas, but this new factory represents a significant shift towards domestic manufacturing.

The establishment of this facility is anticipated to create approximately 20,000 jobs in research and development throughout the United States. As part of its commitment to US manufacturing, Apple plans to invest $500 billion (approximately A$786.93 billion) in the United States over the next four years.

Apple's decision to build this facility aligns with pressures from the recent Trump administration, which has been advocating for companies to reduce their manufacturing footprint in China and invest in job creation within the US. In a post on Truth Social, Trump expressed gratitude to Apple and its CEO, Tim Cook, for their efforts. Reports indicated that Cook had a meeting with President Trump last week to discuss these plans.

In addition to the new factory in Texas, Apple confirmed last month that it has begun mass production of its own chip designs at a factory in Arizona that is operated by Taiwan Semiconductor Manufacturing Co. (TSMC). The company is also expanding its Advanced Manufacturing Fund, doubling its investment to $10 billion (around A$15.74 billion). This expansion includes a substantial financial commitment from Apple towards producing advanced silicon at TSMC’s facilities in Arizona.

Recently, Apple introduced the iPhone 16e, which features the company's first in-house cellular modem named the C1. This modem is touted as the most power-efficient modem ever made for an iPhone. Furthermore, according to Bloomberg’s Mark Gurman, Apple has plans to eventually integrate this modem component into its central processor, which could take place around the year 2028. This integration is expected to lead to improvements in both energy efficiency and cost savings for the devices.

Apple, Foxconn, AI