Apple Wants to Invest $80 Billion More in the U.S. for its 5-Year Plan
Posted on 04/27/2021
Apple Inc. revealed plans to increase investments in the United States. Apple seeks spend around US$ 430 billion in the U.S. over the next 5 years. This is a 20% increase from Apple’s original 5-year goal of $350 billion set in 2018.
Part of this capital expenditure will be geared toward next-generation silicon development and 5G innovation across nine U.S. states. As part of its investments and expansion, Apple plans to invest more than US$ 1 billion in North Carolina and will begin construction on a new campus and engineering hub in the Research Triangle area. Apple will make a US$ 100 million fund to support schools and community initiatives in the greater Raleigh-Durham area and across North Carolina. Apple plans to rapidly expand its teams and operations across other states, including California, Colorado, Massachusetts, New York, Texas and Washington, according to the press release.
Sovereign wealth funds like Norway Government Pension Fund Global and many U.S. pensions have large holdings of Apple stock.
Tax Avoidance and Chinese Labor
Apple has faced complaints in the both the U.S. and Europe over its tax avoidance policies. Apple uses tactics to reduce its U.S. tax bill is to artificially shift large amounts of its U.S. profits into tax havens. For example, between 2008 and 2015, Apple earned US$ 305 billion before taxes, and paid a foreign tax rate of only 5.8% during this period. Apple recently shifted their offshore profits from Ireland to Jersey.
Apple is heavily dependent on Chinese manufacturing. Human rights reports disclosed instances in which alleged forced Uighur labor has been used in Apple’s supply chain. Furthermore, Apple’s lobbyists are trying to weaken a bill targeted at preventing forced labor in China drawing bipartisan fury. Some of these lobbyists include Fierce Government Relations (mostly former Republican staffers) and Invariant LLC (mixture of former Democrats and Republicans). The Uyghur Forced Labor Prevention Act would require U.S. companies to guarantee they do not use imprisoned or coerced workers from the predominantly Muslim region of Xinjiang. Apple reported it spent time “educating” U.S. lawmakers on policy aspects of the bill. The House passed the Uyghur Act by a vote of 406-3 vote on September 22, 2020; it awaits the U.S. Senate. Apple discovered that China-based Suyin Electronics, one of its suppliers, relied on child labor on multiple occasions, but still took three years to fully cease ties.