(Reuters) – Apple Inc on Tuesday said it would award, Corning Inc, the $250 million of the $5 billion fund dedicated to U.S. in advanced manufacturing.
FILE PHOTO: CEO Tim Cook speaks at an Apple event at its headquarters in Cupertino, California September 10, 2019. REUTERS/Stephen Lam
Corning supplies the glass for Apple products such as ipad, iPhone, and the Apple Watch. Since the very first iphone to the market in 2007, with the glass on each iPhone sold, it was produced at Corning’s Harrodsburg, Ky plant.
Apple and Corning did not disclose the terms of the deal. In the past, Apple has made a long-term supply agreements with the suppliers, which provides upfront cash to lock in the supply of spare parts and cost-effective prices. The supplier will, in its turn, the capital, to carry out research and development, or upgrading of facilities.
With a few exceptions, Apple’s devices are assembled in China, where the company’s supply chain is becoming increasingly concentrated over the past five years. The process of clustering features, Apple is in the midst of the trade war between the United States and China.
Prices on many of Apple’s products, including the AirPods wireless headphones, which entered into force on Sept. 1, with the majority of analysts are expecting that Apple will have to absorb the cost of the taxes as is necessary to enable them to pay for it. Apple has not disclosed the financial effects of which are specific to the rates.
In the meantime, Apple has released over the past few years, emphasizing its supplier base in the United States of america.
Apple has announced its funding for the U.S. suppliers in 2017, apart from the $1 billion to boost the figure to $5 billion a year later. The company said that it will spend $60 billion, with more than 9,000 U.S. vendors by 2018.
It is a count of up to $200 million by 2017, Video now has $450 million of the company’s funds. Apple said in a statement, that the expenses incurred with the Video, it supports over 1000 jobs in Corning, which is about 400 manufacturing jobs at the plant in Kentucky.
“This award underscores Apple’s and Video’s shared a belief in the essential role that imagination plays in the creation of industry-leading products, and is the pride and joy of both of the companies in the application of American innovation and advanced manufacturing to solve some of the world’s biggest technological challenges, Apple’s Chief Operating Officer, Jeff Williams said in a statement.
Apple has now been awarded with over $1 billion from the fund. The other prizes were $390 million in chipmaker Finisar Corp., which makes chips for Apple’s facial recognition technology in Texas, and $10 million for a joint-venture between Alcoa Corp. (a) Rio Tinto’s aluminum business to develop a carbon-free aluminum smelting process.
Report by Stephen Nellis in San Francisco; Editing by Leslie Adler