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Chief executive officer of Apple this week revealed to the members of the U.S. Senate permanent subcommittee on investigations that the company has invested about $100 million into a production facility in Texas, which will assemble Macintosh computers. In addition, he said that components for the new PCs will be manufactured across various states.

“We are investing $100 million to build a Mac product line here in the U.S. The product will be assembled in Texas, include components made in Illinois and Florida, and rely on equipment produced in Kentucky and Michigan,” said Tim Cook to the Senate committee, reports AllThingsD web-site.

 

Previously it was reported that Apple’s plan to bring Mac production back to the U.S. is a joint project with Foxconn Electronics, the world’s largest contract manufacturer of electronics equipment. Earlier it was unknown whether Apple wants to make new Macs in California, or Texas, two states where Foxconn has factories. Thanks to the comment made by Mr. Cook, it is now known that the new Apple PCs will be assembled in the Lone Star State.

In order to assembly personal computers and other electronics in high volumes the U.S., Foxconn will need to train engineers at its plants in China and then bring them back home. In addition, new assembly lines have to be built. To fund the U.S. manufacturing effort, Apple will spent $100 million, a considerable amount of money.

As it appears, the project includes a lot more than just assembly. Certain components of new Macs will actually be made in Illinois and Florida. Moreover, state-of-the-art Intel processors are also diffused in the U.S.

Currently there are some iMacs that carry “Assembled in the USA” label in the wild. Going forward, more Apple PCs will carry the same tag.

“We are really proud of [bringing manufacturing back to the U.S.]. We could have quickly maybe done just assembly, but it is broader because we wanted to do something more substantial. So we will literally invest over $100 million. This does not mean that Apple will do it ourselves, but we will be working with people, and we will be investing our money,” said Tim Cook, the chief executive of Apple, in an interview last year.

Tags: Apple, Foxconn, iMac

Discussion

Comments currently: 10
Discussion started: 05/24/13 04:57:56 AM
Latest comment: 05/29/13 05:17:39 AM
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1. 
Great! My bending Unit brothers! The meat sacks have jobs for us in Texas, Hot chillis and plenty of tequila for everyone! [ Loud belching, with flames shooting from mouth]. You meat sacks, with your Steve Jobs t shirts, you're alright!
2 0 [Posted by: BigChiefRunAmok  | Date: 05/24/13 04:57:56 AM]
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2. 
Subtext: "Now leave us alone, IRS. You see, if you formally investigate us, we will push all these USA jobs back to China. Leave us to make our absurdly high profits without paying our dues back to the society we rip off".
2 0 [Posted by: linuxlowdown  | Date: 05/24/13 07:45:06 AM]
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No, the real Subtext is that this plant will employ more automated workers than people, and as such, the primary cost of production of the product will shift from workers wages to shipping costs, and shipping costs from China are more than shipping costs from Texas! Robots work for no wages, And the only way factory production will come back to America, is if the cost of labor is so cheep(robots), that the only way to increase profit margins would be to cut shipping or other ancillary costs!
1 0 [Posted by: BigChiefRunAmok  | Date: 05/24/13 08:58:30 AM]
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The picture above says it all: "They'll move some Chinese to Texas to work for $0.22/hour.
2 0 [Posted by: Zingam  | Date: 05/25/13 07:19:14 AM]
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3. 
The early nineties was crazy and evil. To make the home country suffer and to make huge profits for oneself. The public saw the invention of new terminology, like innovation, flexibility, worker's attitude towards their field as a social phenomenon and know-how, which don't actually mean anything, and there was created the applied science universities, which educate people, who can better take orders. They held economic forums in Davos, Switzerland, where one critical guy wrote that when he asked when are the company representatives going to start to care for social and ecological questions, he only created an awkward silence in the conference. Everybody were just in it for fast egoistic profits.The West went through this process, where the industry was moved to China, the jobplace values in the West turned to bullying, part-time job and whismy individual layouts and finally the current depression. Then the companies started to sound nicer under public pressure: EA changed their tactics of Online registration and their spokesman said "games are not a mass product", and Apple goes back to USA.
0 0 [Posted by: Teemu Ruskeepää  | Date: 05/24/13 09:09:04 AM]
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4. 
Communism will win! After they've built in in China. Now they'll finish it in the USA. Many Americans will be happy to work 12-14 hours a day for $150/month
0 0 [Posted by: Zingam  | Date: 05/25/13 07:17:23 AM]
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No, the factories will not employ chinese, but they will employ chinese made robot workers, designed in Japan! The factories will be close to their intended markets, but no large number of americans will be employed, in fact most of the human workers will be H-1B visa workers, from around the world, who have the skill sets needed to maintain and repair the plant's robots! Every other plant occupation will be done by workers made of plastic, metals, chips, and software! Remember, just to feed a human, at US rates, would cost more in food prices, alone, to justify using a human, no matter how low the wages! And with telepresence, a robot could be controlled by a human in an vr-sensor suit, and the potential H-1B visa human robot repair workers could remain in their respective countries, and be paid the cheeper wages and eat the cheeper food!
0 0 [Posted by: BigChiefRunAmok  | Date: 05/27/13 01:36:55 PM]
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5. 
They make it sound like a lot when stating the $100 million investment, that's peanuts for the likes of apple/foxconn, and I wonder what tax breaks they will be given for the privilege of setting up another sweat shop in the U.S. instead of China

In the scheme of things a $100 million investment is literally just a drop in the ocean compared to the obscene profits, (taxed @ ~2%) apple makes
0 0 [Posted by: alpha0ne  | Date: 05/27/13 10:01:47 PM]
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Robots do not sweat, in fact robots leak, maybe a little hydraulic oil, but that is just the big packaging an loading robots! The majority of the robots on this assembly line will be powered by stepping motors, or pneumatic air! Any points on the assembly line, that may require a human, will be connected through telepresence, with a human technician, working from a low wage chinese, or other telepresence control center, and the
technician will likely be in an air conditioned environment, to Keep the high tech telepresence computers from overheating! Not Much sweating, all around, but robots work 24/7, with a lot less energy cost, compaired to paying the food bills alone for a human! this is the new production paradigm, no real labor costs, no large shipping containers from china, with their high fuel costs to market! Just telepresence controlled robot forman, and specilized robot assembly workers, on this assembly line! The only sweating in Texas will be done by the passers buy, in the heat of the day, as they gaze upon the monolithic building without windows, with the big Apple logo on the side!
0 0 [Posted by: BigChiefRunAmok  | Date: 05/28/13 08:45:20 AM]
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6. 
this will reduce apple's profit
5 0 [Posted by: mudi1  | Date: 05/29/13 05:17:39 AM]
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