Why Apple's First Investment From Its $1 Billion US Manufacturing Fund Is Corning Glass

When it was first announced, pointed questions were raised about the real purpose of Apple's $1 billion  manufacturing fund. Cynics assumed that it was a way to curry public and official favor given that most of its products are made in Asia and the bulk of its billions in cash are kept overseas to avoid taxes.

Investing in a Fortune 500 company that is already a major Apple supplier does nothing to tamp down speculation that this is just another form of 'rust-wash' designed to deflect criticism that Apple is not benefiting workers or innovators. Apple will have to be more creative if it wants to optimize the impact of its $1billion, dispel those charges and protect its offshore strategy. JL

Chaim Gartenberg reports in The Verge:

The glass company is a logical choice of Apple’s investment given that Corning is a longtime Apple partner headquartered out of New York and has a major production plant in Kentucky, furthering technology for a major supplier and local manufacturing.Corning is known for its Gorilla Glass displays on the iPhone. Apple is investing $200 million to “support Corning’s R&D, capital equipment needs, and state of the art glass processing.”

Apple announced today that glass supplier Corning will be the first recipient of funds from the $1 billion US Advanced Manufacturing Fund that Apple CEO Tim Cook announced in the beginning of May.

Corning is best known for its incredibly durable Gorilla Glass displays, which are featured on numerous high-end smartphones, including the iPhone. Apple is investing $200 million in the company to “support Corning’s R&D, capital equipment needs, and state-of-the-art glass processing.”

The glass company is a logical choice as a recipient of Apple’s investment, which is meant to promote increased US-based manufacturing. Given that Corning is a longtime Apple partner that’s both headquartered out of New York and has a major production plant in Harrodsburg, Kentucky, it’s an easy win for Apple in both furthering technology for a major supplier and fostering local manufacturing.

The glass company is a logical choice for a recipient of Apple’s investment

According to Corning’s CEO, Wendell Weeks, the company’s partnership with Apple over the last 10 years has already led to creation of nearly 1,000 jobs in the United States.

Apple has already dabbled in US-based manufacturing itself with the Mac Pro, and the company has been rumored in the past months to be considering exploring further options for expanding its domestic production as well. That move — along with the creation of the Advanced Manufacturing Fund — is likely influenced, at least in part, by President Donald Trump, who has expressed numerous times his desire to have Apple move iPhone production to the United States.