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A $1 Billion U.S. Advanced Manufacturing Fund To Be Created By Apple

A $1 Billion U.S. Advanced Manufacturing Fund To Be Created By Apple
In what is being described the iPhone maker's latest effort to show how it is creating U.S. jobs, Apple Inc announced plans to create a $1 billion fund to invest in U.S. companies that perform advanced manufacturing, its Chief Executive Officer Tim Cook said.
Cook said during a television interview that later in the m month of May, the fund's first investment would be announced by the Cupertino, California IT company.
Programs that could include teaching people how to write computer code to create apps is being planned to be funded by apple and the company will release more details about the effort this summer Cook also said.
In the recent past, Apple has taken up quite a few of such initiatives in order to highlight how the world's largest company by market valuation contributes to job creation in the United States and the latest announcement is one more in that series of disclosures of its job creation programs.
Apple spent $50 billion in 2016 with its U.S. suppliers, which include firms like 3M Co and Corning Inc, the first time Apple has disclosed the metric, Cook said in February during the company's annual shareholder meeting.
The company has created 2 million jobs in the United States, 80,000 of which are directly at Apple and the rest coming from suppliers and software developers for the company's app ecosystem, Cook said, while reiterating during the TV interview that the company had spent a sizable amount of money for its U.S. suppliers.
In recent weeks, the U.S. government and the lawmakers have been trying to bring back accumulated profits from overseas at potentially lower tax rates allegedly stacked up in banks outside of the U.S. through a major tax proposal by Trump that would be applicable for let Apple, along with other large U.S. companies and the recent efforts of Apple to highlighting its U.S. presence coincides with those efforts of the lawmakers.
Apple would have to borrow the cash for its U.S. manufacturing investment fund and said he was hopeful Trump administration would address the repatriation issue, said Cook, who met with lawmakers in Washington earlier this year to discuss tax policy and technology issues.
However, on the issue of stacked up capital away in foreign banks, no commitment was available from Cook who stopped short of saying Apple would bring some of its cash back into the United States if Trump's tax proposal was enacted.
"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," Cook said in response to a question about tax reform.

Christopher J. Mitchell

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