Apple expands US capital spending, plans to add 20,000 jobs, invest in data centers

Apple joins the chorus of companies outlining revised capital spending plans, as it repatriates offshore cash to the US.

Video: Apple transfers iCloud in China to government-backed firm

Apple said that it will expand its capital investment in the US to $30 billion over the next five years including $10 billion allocated to data centers.

Overall, Apple said it plans to create more than 20,000 new jobs and invest $350 billion over the net five years.

The Apple news comes as companies in the US are recalculating their tax bills due to the Tax Cuts and Jobs Act of 2017. In many cases, enterprises have received an earnings boost and more capital to allocate.

Apple said it will repatriate overseas cash and deliver a record tax payment. That amount will be about $75 billion of its contribution to the US economy. The repatriation tax payment will be about $38 billion.

As for the US, Apple outlined the following:

  • $10 billion will be allocated to data center investments across the US.
  • The 20,000 new jobs will be due to hiring at existing campuses and opening a new one.
  • Apple is breaking ground on a new facility in downtown Reno.
  • The company is expanding its Advanced Manufacturing Fund from $1 billion to $5 billion. The fun aims to bolster American manufacturers.
  • Apple will also invest in teaching students to code and programs focused on STEAM.

Apple ended fiscal 2017 with $269 billion in cash, cash equivalents and marketable securities.

Further, Apple told employees on Wednesday it's issuing a bonus of $2,500 worth of restricted stock units for senior-level directors, according to Bloomberg. Following the introduction of the new tax law, Apple will begin issuing the bonus in the coming months.

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