Apple Inc. today announced that it will invest $430 billion in the U.S. over the next five years as part of an expansion initiative that includes, among other things, plans to spend “tens of billions of dollars” on developing chip and networking technologies.

The iPhone maker expects to create more than 20,000 new positions in the process.

“At this moment of recovery and rebuilding, Apple is doubling down on our commitment to U.S. innovation and manufacturing with a generational investment reaching communities across all 50 states,” said Apple Chief Executive Officer Tim Cook in a statement.

Apple announced, without providing a specific figure, that it will invest tens of billions of dollars across nine states in chips and 5G networking technology. The nine states are California, Colorado, Maine, Massachusetts, New York, Oregon, Texas, Vermont and Washington. The reference to 5G hints that Apple may be ramping up its reported initiative to develop an internal 5G modem chip to replace the Qualcomm Inc. modems currently found inside iPhones.

The investments underscore the fact that Apple’s chip design capabilities are increasingly a key competitive differentiator for the company. Most of its core products now run on internally designed processors, including the newest iMac that debuted last week, which promises an 85% speed boost over the previous generation.  

Alongside the silicon and 5G investments, Apple plans to open a $1-billion-plus campus in North Carolina where more than 3,000 engineers will work on artificial intelligence software and other technologies. The campus will be located in the Research Triangle area, so named after the three universities located in the region.

Apple will establish a $100 million fund to support schools and community initiatives in the greater Raleigh-Durham area and across the state. The iPhone maker furthermore pledged to contribute $110 million in infrastructure spending. Overall, Apple estimates, its investments will bring over $1.5 billion in economic benefits annually for North Carolina.

The company detailed a number of other upcoming office expansions as well. In California, Apple will grow its San Diego facility to more than 5,000 employees by 2026 and expand its Culver City teams to more than 3,000 employees. In Colorado, the iPhone maker’s Boulder engineering group is expected to reach 700 team members by 2026, while its Boston area offices will be bolstered with hundreds of new hires during the same five-year time frame. Apple also plans to double its currently 1,000-person Seattle workforce, though it didn’t specify by when.

Not all of the $430 billion Apple plans to spend will go toward office expansions. Also on the company’s agenda: a new data center in Iowa and a distribution center in Indiana that will be built by partner XPO Logistics Inc. with the help of a $100 million investment from the iPhone maker.

Another part of the $430 million Apple has set aside to grow its U.S. operations will go toward bringing the company closer to its goal of becoming fully carbon-neutral by 2030. One of the projects the iPhone maker is working on is an upcoming energy storage facility in Monterey County, California, that will provide electricity for its Cupertino headquarters. The facility will reportedly features an array of Tesla Inc. battery systems with capacity for 240 megawatt-hours of energy. 

Photo: Apple