By USA Goldmines 
Former CEO at Intel Pat Gelsinger said that Apple isn’t making iPhones in the U.S. because of sedimentation in the industry’s supply chain. He believes it will take new automation and economic policy to drive the re-sedimentation of Apple’s supply chain in the U.S.
Gelsinger also acknowledged there will be increased costs associated with bringing supply chains back to the U.S. He argued that the ultimate cost of a highly automated robotics-driven supply chain in the U.S. is less than an Asian supply chain.
iPhone manufacturing in the U.S. seems possible with investments
Something I wanted to add regarding iPhone and other Apple products being made in the US:
Supply chains are so complicated in general, let alone a tech supply chain, it takes a significant amount of time to get a new one up and running.
If Apple decided today to move all… https://t.co/O5u9Z5OtXE
— Rich (@richphotoio) April 27, 2025
Intel’s former boss, Pat Gelsinger, maintained that it was possible to move iPhone production to the U.S., but it would require investment and consistent policy for it to occur. Taiwan Semiconductor Manufacturing Company announced in early March plans to invest $100 billion in the U.S. to expand chip production. The firm said the investment will include the construction of three new labs, two advanced packaging facilities, and a major R&D center.
Gelsinger said that TSMC’s investment in the U.S. will not benefit the nation’s chipmaking abilities, given that R&D will remain confined to Taiwan. He believes that technology transfer is a “must” for the U.S. to be the dominant force.
Intel’s former CEO argued that Trump’s tariffs have been “incrementally beneficial” because they will bolster in-house chip production, given that they have prompted companies like TSMC to set up regional facilities.
The U.S. president’s press secretary, Karoline Leavitt, mentioned that Apple’s recent announcement of a $500 billion investment indicated a U.S.-made iPhone was possible. She also highlighted that Trump believed the increased import costs sparked by tariffs would encourage Apple to ramp up manufacturing in the U.S.
“We have the labor, we have the workforce, we have the resources to do it. If Apple didn’t think the U.S. could do it, they probably wouldn’t have put up that big chunk of change.”
–Karoline Leavitt, White House Press Secretary.
U.S. financial company Wedbush Securities argued that the cost of an American-made iPhone would more than triple if production was shifted to the U.S. Wedbush analyst Dan Ives added that if consumers wanted a $3,500 iPhone, “we should make them in New Jersey or Texas or another state.”
Apple supply chain expert professor Fraser Johnson also acknowledged last month that the U.S. economy did not have the facilities or the flexible labor to assemble iPhones.
Apple plans to switch iPhone assembly to India
“Apple plans to shift assembly of all US-sold iPhones to India by 2026, doubling iPhone output in the country. This move aims to diversify its supply chain and mitigate the impact of US tariffs on Chinese-manufactured iPhones.” https://t.co/EdwwIMRNFL pic.twitter.com/JAFn7Jj6tf
— Rajeev Mantri (@RMantri) April 25, 2025
Apple reportedly plans to switch iPhone assembly for the U.S. market to India as it seeks to reduce Chinese manufacturing reliance amid Donald Trump’s trade war. The firm also aims to make the shift as soon as next year.
The $3 trillion technology company was among the biggest stock market casualties due to Trump’s aggressive tariff policies. The iPhone maker’s Chinese-made products were hit with a hefty import tax when they reached the U.S.
The White House later excluded smartphones from the Chinese tariffs, although Apple is still exposed to a 20% levy on all Chinese goods. The tech firm wants to source from India the more than 60M iPhones sold in the U.S. annually by the end of 2026, which would require more than doubling iPhone assembly in India.
Apple’s main Indian suppliers, Foxconn and Tata, shipped almost $2 billion worth of handsets to their largest market in March as the firm sought to tackle the impact of looming tariffs. The company said that it also chartered cargo flights to ferry 600 tonnes of iPhones (roughly 1.5M devices) to the U.S. to ensure sufficient inventory. The iPhone maker has three plants in India and last month temporarily extended operations to working on Sundays at the biggest Foxconn India factory in Chennai.
U.S. investment bank Evercore revealed that more than 50% of Apple’s Mac products and 80% of its iPads are assembled in China, while Apple watches are largely built in Vietnam.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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