Tim Cook, the chief of Apple, Inc. (NASDAQ: AAPL) has announced that his company is on the path to create a $1 billion fund. This money will be invested inside the United States to set up “advanced manufacturing”. This action of Apple will result in a common ground with President Donald Trump of the United States. The latter has repeatedly stressed on the US becoming a manufacturing hub. The initial investment of the brand new fund will be announced during the latter half of May.
The CEO of Apple has been among the many influential minds inside Silicon Valley who criticized Trump in matters of restricting immigration. He, however, endorsed the US president when it came to reforming the American tax system. Cook subsequently described it as a sensible practice to explore common themes with the US administration and standing up if disagreements crop up.
Apple has approximately 80,000 employees inside the United States. The company has plans to hire thousands more. Cook justified this action by saying that any company must have values as they are essentially a gathering of people, and the people must have values. It is thus important to give back to the community.
The CEO of Apple pointed out that the company has spent approximately $50 billion inside United States in 2016. The money spent was due to equipment purchase from high technology companies like Corning Glass. It also worked with a number of developers who were behind the applications for the device.
Apple has made plans to borrow money to shore up this new fund despite the company enjoying massive amount of money in its coffers. It is purposely doing so as the company would have to endure a tax hit if it brought its profits back to the United States.
Apple is not the only company to show interest when it comes to investing inside United States. Foxconn, the Taiwanese technology behemoth, has announced its intention of investing about $7 billion in the country. The money will be put to use to manufacture flat panels. The project is a collaborative effort with SoftBank of Japan. The company is the biggest contract electronics maker in the world. It assembles products for a number of international brands like Sony and Apple.
Apple faces a peculiar problem: its cash stockpile is now a gargantuan $256.8 billion. The company has given no inclinations as what to do with such huge reserves.