*

Apple ( AAPL ) will work with Foxconn to build server factory by

2026

*

To spend $500 billion over four years with U.S. suppliers

*

Most products assembled overseas, but many parts made in

the

U.S.

(changes headline, recasts paragraph 1, adds context)

By Stephen Nellis

Feb 24 (Reuters) - Apple ( AAPL ) said on Monday it

would spend $500 billion in U.S. investments in the next four

years that will include a giant factory in Texas for artificial

intelligence servers and add about 20,000 research and

development jobs across the country in that time.

That $500 billion in expected spending includes everything

from purchases from U.S. suppliers to U.S. filming of television

shows and movies for its Apple TV+ service. The company declined

to say how much of the figure it was already planning to spend

with its U.S. supply base, which includes firms such as Corning

that makes glass for iPhones in Kentucky.

The move comes after media reports that Apple ( AAPL ) CEO Tim Cook

met President Donald Trump last week. Many of Apple's ( AAPL ) products

that are assembled in China could face 10% tariffs imposed by

Trump earlier this month, though the iPhone maker had secured

some waivers from China tariffs in the first Trump

administration.

Apple ( AAPL ) made a similar announcement about its U.S. spending

plans in 2018, during the first Trump administration, when it

said its new and ongoing investments would contribute $350

billion to the U.S. economy over five years.

Shares were down marginally in pre-market trading.

Trump, in a Truth Social post, thanked Apple ( AAPL ) and Cook,

saying the move reflected the company's faith in his

administration.

Most of Apple's ( AAPL ) consumer products are assembled outside the

U.S., though many of Apple ( AAPL ) components are still made there,

including chips from Broadcom ( AVGO ), SkyWorks Solutions ( SWKS )

and Qorovo.

Apple ( AAPL ) said it last month started mass producing chips of its

own design at an Arizona factory owned Taiwan Semiconductor

Manufacturing Co. ( TSM )

Bringing TSMC to Arizona and helping introduce legislation

that later became the CHIPS Act to bolster U.S. semiconductor

production were two of Trump's biggest industrial policy moves

during his first term.

Apple ( AAPL ) said on Monday it will work with Foxconn, formally

known as Hon Hai Precision Industry ( HNHPF ), to build a

250,000-square-foot facility in Houston, where it will assemble

servers that go into data centers to power Apple Intelligence,

its suite of AI features that help draft emails and perform

other tasks. Those servers are currently made outside of the

U.S., Apple ( AAPL ) said.

Apple ( AAPL ) said it plans to increase its Advanced Manufacturing

Fund from $5 billion to $10 billion, with part of the expansion

being a "multibillion-dollar commitment from Apple ( AAPL ) to produce

advanced silicon" at TSMC's Arizona factory.

Apple ( AAPL ) did not disclose details of its deal with TSMC, but it

has in the past used the fund to help partners build out the

infrastructure needed to deliver products or services for Apple ( AAPL ).

Apple ( AAPL ) will also open a manufacturing academy in Michigan

where its engineers, along with local university staff, will

offer free courses for small and mid-sized manufacturing firms

in areas such as project management and manufacturing process

optimization.