This significant move comes at a time when lawmakers are reviewing U.S. tax policies to bring back accumulated profits from overseas at lower tax rates.
Apple’s Chief Executive Officer, Tim Cook has disclosed that Apple plans on creating a $1 billion investment fund which it will deploy as investments in U.S. advanced manufacturing companies.
This is Apple’s latest showcase to the Trump Administration that it is creating new U.S. jobs.
During an interview on CNBC, Cook disclosed that the company in which the fund will be deployed will be announced later in May.
Cook also stated the funds will be used to fund programs that teach people how to code. It will release more details on this subject later this summer.
On the campaign trail U.S. President Donald Trump had painted Apple in a bad light since most of its products are manufactured in China.
In a totally new disclosure, earlier this year in February, during Apple’s AGM, Cook stated that Apple had spent $50 billion in 2016 with its U.S. suppliers, which include 3M Co and Corning Inc.
This is the first time that Apple has disclosed the metric.
In the CNBC interview, cook reiterated this point along with another claim that Apple has created 2 million jobs in the United States, of which 80,000 are are at Apple while the rest come from suppliers and software developers for the company’s app ecosystem.
These disclosures are significant, since currently lawmakers are considering a major tax proposal by the Trump Administration which wants to bring back accumulated profits from overseas at potentially lower tax rates.
93% of Apple’s $256.8 billion cash is held overseas.
To this end, Cook had met with lawmakers in Washington earlier this year and had discussed, among other matters, tax policies and technology related issues.
“To invest in the United States, we have to borrow. This doesn’t make sense on a broad basis. So I think the administration, you saw they’re really getting this and want to bring this (cash) back. And I hope that comes to pass,” said Cook in response to a question about tax reform.