News

Apple plans Arizona iPhone plant

Apple plans Arizona iPhone plant

APPLE PLANT: The company plans an Arizona location. Photo: Reuters

(Reuters) – Apple Inc will open a manufacturing facility in Arizona in partnership with mineral crystal specialist GT Advanced Technologies Inc to make sapphire materials for Apple’s popular electronics devices.

The project will provide 700 manufacturing jobs in the first year and 1,300 construction and associated jobs in Mesa, Arizona, according to a statement by Arizona Governor Jan Brewer on Monday.

Apple confirmed the plan, but would not say exactly what components would be made at the new facility or what products they would appear in.

GT specializes in “crystal growth equipment” for consumer electronics and other industries. It said on Monday it signed a multiyear supply agreement with Apple to provide sapphire material, which has in the past been used in watches, optical instruments and integrated circuits. There have been reports that device makers are looking at sapphire crystal for use in screens.

Apple’s push to create jobs in the United States comes after scrutiny of its massive overseas cash reserves and conditions for workers at contract manufacturer facilities it uses in China.

The move also signals a tentative revival in U.S. manufacturing. Earlier this year, Apple revealed plans to build computers at a site in Austin, Texas, while Google Inc’s Motorola unit decided to assemble its new Moto X phones in the same state.

Big corporations such as Caterpillar Inc and General Electric Co have been shifting some production back to home soil over the past few years. Last month Wal-Mart Stores Inc announced a campaign to buy more U.S.-made goods.

GT said it will own and operate the furnaces to produce the sapphire material, but Apple will own the Arizona facility.

Under the terms of its supply deal, Apple will give GT a prepayment of about $578 million, which GT will pay back to Apple over five years, starting in 2015, GT said.

Recent Headlines

in Music, Sports

Football star tackles stage invader at Zac Brown gig

Fresh
jjwatt

Houston Texans star J.J. Watt turned security guard.

in National

Election 2016: You’ve got mail

Fresh
hillaryemail

Inboxes are overflowing as political candidates amp up email appeals for cash.

in Sports

NBA: Wade to test free agent market

Fresh
dwade

Dwyane Wade's 12-year stay with the Miami Heat could be ending.

in Sports

Swede Lidstrom headlines Hall of Fame’s Class of 2015

Fresh
lindstromhalloffame

Nicklas Lidstrom, one of the NHL's most decorated defensemen and a trailblazing leader, was elected into the Hockey Hall of Fame as part of the shrine's seven-member Class of 2015.

in Sports

Germay, U.S. set for ‘very heated’ World Cup semi-final

Fresh
17-overlay8

The German juggernaut will run into the U.S. wall as the top-ranked nations clash, with a spot in the Women's World Cup final on the line.