Apple to build new $1bn campus in Texas

Apple unveiled plans on Thursday for a $1bn campus in Texas that will create jobs for the tech giant outside Silicon Valley, a move made without the fanfare of the recent Amazon headquarters bidding war.

The new campus - for engineering other functions, but not manufacturing - will be near the tech giant’s existing facility in Austin and initially accommodate 5,000 new employees, with room to grow to 15,000.

As it stands, 6,200 people now work for Apple in the Texan capital, the largest cluster outside its headquarters in Cupertino, California.

Apple said in January it would invest about $30bn in the US over the next five years and create 20,000 new jobs, using some of the overseas profits repatriated at a tax rate lowered under a law passed by Congress in 2017.

The move comes amid intense pressure from President Donald Trump to move jobs, especially in manufacturing, to the US, with the White House imposing heavy tariffs to counter what he calls unfair trade practices.

Trump singled out Apple in September, calling for the California giant to bring iPhone manufacturing to the US.

“Apple prices may increase because of the massive Tariffs we may be imposing on China — but there is an easy solution,” the president tweeted on September 8. “Make your products in the United States instead of China. Start building new plants now.”

Apple’s announcement does not concern the manufacturing of its iPhone, assembled in China with components from various locations.

Employees at the new campus will work in fields including engineering, research, operations, finance, sales, and customer support, Apple said.

“Apple is proud to bring new investment, jobs, and opportunity to cities across the United States and to significantly deepen our quarter-century partnership with the city and people of Austin,” said Apple CEO Tim Cook.

“Talent, creativity and tomorrow’s breakthrough ideas aren’t limited by region or zip code, and, with this new expansion, we’re redoubling our commitment to cultivating the hi-tech sector and workforce nationwide.”

Apple also said it plans to boost its employee base in regions across the US over the next three years.

It will expand to more than 1,000 employees each at new sites in Seattle, San Diego and Culver City, California, and add hundreds of jobs in Pittsburgh, New York, Boulder, Colorado, Boston, and Portland.

Apple said it plans to invest $10bn in US data centers over the next five years, including $4.5bn in 2018 and 2019.

Apple did not indicate whether it had received any tax incentives for its new facilities.