Latest News No, Apple isn't opening a new manufacturing plant in...

No, Apple isn’t opening a new manufacturing plant in Texas – Ars Technica

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Not rather —

“I opened a big Apple manufacturing plant in Texas,” Trump wrote Wednesday.

Timothy B. Lee

Donald Trump speaks at Apple's Mac Pro manufacturing facility in Austin, Texas.
Enlarge/

Donald Trump speaks at Apple’s Mac Pro manufacturing facility in Austin, Texas.

MANDEL NGAN / Getty

President Donald Trump toured Apple’s Mac Pro production facility in Austin, Texas, with CEO Tim Cook on Wednesday.

“We are observing the starting of a incredibly potent and significant plant,” Trump explained during the visit. “I want to see Apple setting up plants in the United States. That is what is occurring.”

Trump echoed that concept in a tweet after the tour. “Today I opened a major Apple manufacturing plant in Texas that will bring superior shelling out work back to The usa,” he wrote.

Trump neglected to point out a pair of crucial info about the facility. Initial, it is really technically owned by Apple contractor Flex, not Apple alone. Extra significant, it is really not new. Apple has been constructing the Mac Pro at the exact same locale considering that 2013.

Appleisopening a new facility in Austin—a 3 million sq. foot business office elaborate the place Apple claims its staff members will accomplish a assortment of functions, which includes “engineering, R&D, operations, finance, gross sales and client aid.” In remarks at the Mac Pro plant Wednesday, Prepare dinner touted it as a $one billion investment decision that will develop Apple’s 2nd-greatest website after Apple’s household base in Cupertino.

But that new facility isn’t a producing plant. It will create some large shelling out careers, but they are going to mainly be white-collar careers in parts like engineering, finance and income.

Tariff reduction helped Apple remain in the US

Apple’s selection to maintain Mac Professional producing in the United States follows contentious negotiations with the Trump administration. Back in June, aWall Road Journalstory suggested that Apple was making ready to shift Mac Professional manufacturing to China.

The Journalstory involved remarks from an Apple spokesman that didn’t dispute programs to transfer to China. Instead, the spokesman emphasized that “closing assembly is only a person aspect of the production process.”

Guiding the scenes, Apple was seeking tariff concessions that would make it far more very affordable to assemble the Mac Pro in the United States. Quite a few vital elements of the Mac Professional had been designed in China and Apple would incur tariffs if it transported people parts to the US for assembly.

Donald Trump took a really hard line on the concern in a July tweet. “Apple will not be specified Tariff waiver, or aid, for Mac Professional parts that are manufactured in China,” he wrote. “Make them in the United states, no Tariffs!”

But then in September, Apple introduced that it would carry on making the Mac Pro in Austin just after all—and the corporation credited the Trump administration for the shift.

“The US producing of Mac Pro is manufactured achievable following a federal item exclusion Apple is receiving for specific required components,” Apple wrote in its September announcement. In spite of Trump’s threats, his administration granted 10 out of fifteen Apple requests for relief from Trump’s 25 p.c tariff on Chinese imports.

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