Apple to open U.S. manufacturing facility in Mesa, Arizona for sapphire material production
It was announced on Monday that Apple will build a new advanced sapphire manufacturing facility in Mesa, Arizona, bringing a portion of its device production back to the United States.
The announcement came from Arizona Governor Jan Brewer, who highlighted (PDF) Apple's latest initiative as a growth driver for the state. Brewer said the project will create at least 700 "quality" jobs in the first year alone, as well as an additional 1,300 construction jobs associated with the facility's construction.
"Apple is indisputably one of the world's most innovative companies and I'm thrilled to welcome them to Arizona," Brewer said. "Apple will have an incredibly positive economic impact for Arizona and its decision to locate here speaks volumes about the friendly, pro-business climate we have been creating these past four years. Their investment in renewable energy will also be greening our power grid, and creating significant new solar and geothermal power sources for the state."
GT Advanced Technologies will manufacture sapphire material on the Arizona site. Apple made a prepayment of $578 million for the build, which GT Advanced will reimburse in full starting in 2015.
In 2012, Apple CEO Tim Cook said he wanted to bring back some of the company's outsourced manufacturing jobs to the U.S. Currently, Apple's East Asian partner manufacturers, like Foxconn and Pegatron, build a lion's share of devices.
It was reported in June that Apple would hand off manufacture of the upcoming Mac Pro to Flextronics, which would in turn assemble the desktop on U.S. shores.
With today's news, Apple is no longer being coy in its belief that sapphire is a material of choice for certain applications. Questions remain as to what parts will be manufactured at the Arizona plant, though Apple currently uses the material as a cover glass for the iPhone 5s' Touch ID fingerprint sensor, as well as the handset's rear-facing camera.
The announcement came from Arizona Governor Jan Brewer, who highlighted (PDF) Apple's latest initiative as a growth driver for the state. Brewer said the project will create at least 700 "quality" jobs in the first year alone, as well as an additional 1,300 construction jobs associated with the facility's construction.
"Apple is indisputably one of the world's most innovative companies and I'm thrilled to welcome them to Arizona," Brewer said. "Apple will have an incredibly positive economic impact for Arizona and its decision to locate here speaks volumes about the friendly, pro-business climate we have been creating these past four years. Their investment in renewable energy will also be greening our power grid, and creating significant new solar and geothermal power sources for the state."
GT Advanced Technologies will manufacture sapphire material on the Arizona site. Apple made a prepayment of $578 million for the build, which GT Advanced will reimburse in full starting in 2015.
In 2012, Apple CEO Tim Cook said he wanted to bring back some of the company's outsourced manufacturing jobs to the U.S. Currently, Apple's East Asian partner manufacturers, like Foxconn and Pegatron, build a lion's share of devices.
It was reported in June that Apple would hand off manufacture of the upcoming Mac Pro to Flextronics, which would in turn assemble the desktop on U.S. shores.
With today's news, Apple is no longer being coy in its belief that sapphire is a material of choice for certain applications. Questions remain as to what parts will be manufactured at the Arizona plant, though Apple currently uses the material as a cover glass for the iPhone 5s' Touch ID fingerprint sensor, as well as the handset's rear-facing camera.
Comments
I wonder how they are going to make that work with the difference in wages between USA workers and overseas. But I'm certainly glad to see anything coming back to America.
More automation.
What a shame to have such a global company have its return to the US be to land of we hate immigrants and the backyard of the likes of Sheriff Arpaio.
They hate immigrants in Arizona? So all Irish, Chinese, Canadians, Brits, Africans, etc. who have gone there have faced discrimination? I thought it was the "undocumented immigrant" that was the issue.
What a shame to have such a global company have its return to the US be to land of we hate immigrants and the backyard of the likes of Sheriff Arpaio.
That is offensive. I don't know anyone who hates immigrants. We are a nation built on immigrants.
Didn't take long for someone to turn this into a political issue. But if we're going to go there, perhaps Arizona, like Texas has a more friendly business climate than, say California?
"Apple’s investment in Arizona is the latest in a growing line of companies that have taken notice of Arizona’s strong pro-business tax and regulatory environment, and the highly skilled, quality workforce that is available -- all of which have positioned Arizona as the best state in the country to do business."
http://azgovernor.gov/dms/upload/PR_110413_Apple.pdf ;
It's not a wage difference that's keeping manufacturers out of the states. Apple themselves have state this. We don't have the facilities here, and there is a significant tax advantage to keeping manufacturing overseas. I'm 99% positive this is Apple's way of creating their own loophole in order to bring their offshore money back home without being taxed on it.
I wonder how they are going to make that work with the difference in wages between USA workers and overseas. But I'm certainly glad to see anything coming back to America.
Well, that’s the $64,000.00 question isn’t it. Let’s see if all those consumers lamenting the exodus of American jobs to China will put their money where their mouths are. Let’s see if they will pay more for an American made product like they say they will. It would really frost their cakes if Apple somehow figured out how to make iPhones and iPads totally automated, using human labor just to monitor and maintain the machines.
Where does Apple purchase this glass now?
If it is to be used as the front glass, as some suggest, then it may be a neutral cost benefit as the current Gorilla Glass is manufactured in the U.S., correct?
I also hope this will be used for the internal lens elements as they are still plastic.
You can be a lawful immigrant in Arizona and still get crapped on. http://www.statepress.com/2013/10/02/arizona-dreamers-still-unable-to-receive-drivers-licenses/
That makes no sense. Apple is based in California.
You can be a lawful immigrant in Arizona and still get crapped on. http://www.statepress.com/2013/10/02/arizona-dreamers-still-unable-to-receive-drivers-licenses/
You can be a citizen and still get crapped on. Doesn't mean they hate you. And what is a DREAMer anyway?
That makes no sense. Apple is based in California.
Because a company can only hire people from within their own State? Apple has facilities in other States and it is a common business practice.
Mesa, Arizona needs way more than 700 permanent jobs.
Yah I know, you’re right. Apple is just one of those loser companies that can’t do anything right. By the way, how do you even get through the day with that downer attitude of yours? Life must suck for you. I can just see the plaque hanging in your hallway. “Life’s a Bitch and then You Die.”
You can be a lawful immigrant in Arizona and still get crapped on. http://www.statepress.com/2013/10/02/arizona-dreamers-still-unable-to-receive-drivers-licenses
Oooo, we got us a real live activist here. Joined just to tell us how evil Apple is by opening a plant in Arizona.
More automation.
No they won't. They'll offset the cost as part of R&D.
People are under the extreme delusion that robotic fully automated manufacturing, instead of mixed-use human/robotic symbiotic relationships is the present and future roads in manufacturing.
The 130 pairs of hands in a modern and robust Taiwan manufacturing facility for the iPhone isn't due to TSMC and others not having the latest in robotic automation processing. It's the human factors engineering part of the equation that will never change.
But why build in the USA... I thought Apple told the US it did not have the infrastructure to support Apple manufacturing.... it was not the line workers that was the issue since we have ample high school dropouts, but the real problem was trying to get engineering staff in both sufficient quantity and quality that can work under the pressure they put on the overseas facilities.....
What a shame to have such a global company have its return to the US be to land of we hate immigrants and the backyard of the likes of Sheriff Arpaio.
I happen to think that pink underwear is awesome, and that Sheriff Arpaio is a stand up guy.
I am glad to see Apple doing business in Arizona. And there's nothing wrong with immigrants, but illegals on the other hand are no good, and should be removed.