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Apple Investing $300 Million in Austin, Texas to Add 3,600 More Workers
The State of Texas today announced that Apple has committed to spend $304 million to expand its operations in Austin, seeking to add 3,600 employees to its facilities there.
Apple's campus in Austin, Texas (Source: Flickr/The Pug Father)
While Apple's Austin campus focuses primarily on customer support and other administrative functions, it does also house some engineering functions primarily related to chip design. Samsung's chip factory where it produces Apple's A-series chips for its iOS devices is also located in Austin and recently underwent a major expansion itself to support Apple's products.
Update: The City of Austin has also proposed an $8.6 million grant investment in the project should Apple meet certain performance metrics presumably tied to campus development and hiring. Apple is required to invest $56.5 million in new facilities and equipment by the end of 2015, with an additional $226 million investment coming by the end of 2021. Apple has also committed to retaining its existing 3,100 jobs in Austin and adding at least 3,635 new jobs, with yearly hiring targets for each of the ten years following the opening of its Phase I expansion.
The new campus will more than double the size of Apple's workforce in Texas over the next decade, supporting the company's growing operations in the Americas with expanded customer support, sales and accounting functions for the region. In exchange for Apple's commitment to create these new jobs in Texas, the state has offered Apple an investment of $21 million over ten years through the Texas Enterprise Fund (TEF).
Apple's campus in Austin, Texas (Source: Flickr/The Pug Father)
While Apple's Austin campus focuses primarily on customer support and other administrative functions, it does also house some engineering functions primarily related to chip design. Samsung's chip factory where it produces Apple's A-series chips for its iOS devices is also located in Austin and recently underwent a major expansion itself to support Apple's products.
Update: The City of Austin has also proposed an $8.6 million grant investment in the project should Apple meet certain performance metrics presumably tied to campus development and hiring. Apple is required to invest $56.5 million in new facilities and equipment by the end of 2015, with an additional $226 million investment coming by the end of 2021. Apple has also committed to retaining its existing 3,100 jobs in Austin and adding at least 3,635 new jobs, with yearly hiring targets for each of the ten years following the opening of its Phase I expansion.
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91 months ago
I would prefer to keep the jobs in the United States. If the jobs must go to a third world country, Texas is as good as any.
91 months ago
So for anyone screaming "Buy American" - this is the face of globalization. Jobs will go where the skills and price are at equilibrium. Manufacturing in Asia (no, China is many times not the cheapest), higher value-added functions in the US, for example.
I don't hear anyone complaining about these jobs coming/staying in the US, even though they support international markets.
I don't hear anyone complaining about these jobs coming/staying in the US, even though they support international markets.
91 months ago
Interesting they had to bribe them $21 million to do it, though. With $97.6 billion cash on hand and a market cap of over $500 billion, Tim Cook probably has $21 million stuck between the cushions in his couch.
That's how business is run. It's quite common for cities or states to incentivize big business with tax exemptions, building pledges, or other perks. It's not a "bribe", but simple negotiation. The $21 million will easily be put back into the local economy through the jobs created, the taxes paid out by employees, and the other business generated by this expansion.
91 months ago
I would prefer to keep the jobs in the United States. If the jobs must go to a third world country, Texas is as good as any.
Texas is fine, it's our 3rd World Governor!
91 months ago
Anyone who is surprised about this and wonders why Austin, Texas, has no clue about the tech industry in Texas. Just in the Austin area alone you have Apple, Microsoft, Dell to name a few. Up the road a few hours north you've got Microsoft, RIM, IBM. The expansion in Austin makes perfect sense.
91 months ago
Why does Texas need to give Apple a 21million break?
These types of subsidys make no sense. Yeah, I know....they are used to bribe companies to create jobs in an area.
No different than people subsidizing sports teams through tax increases.
An inefficient use of taxpayer money.
Most in Texas would disagree with you. Austin's lifeline is that big business that allows for its strange and unique culture. The state will make that money back as it has proven time and time again.
91 months ago
I can tell you Austin is very overrated and liberal. :rolleyes: Our governor is a hell of a lot better than our president, and a lot more qualified to be in his position. I prefer College Station than Austin any day of the week. :p
Hush up, Aggie...
jk ;)
91 months ago
Austin.....
Why don't Dallas or Houston count? And from someone that lived in Austin, it's not the liberal sanctuary that it's claimed to be; it's just liberal for Texas.
You've obviously never spent time in Austin, or any other part of Texas (Dallas and Houston don't count). Governor is a ding-dong, people and culture are not.
Why don't Dallas or Houston count? And from someone that lived in Austin, it's not the liberal sanctuary that it's claimed to be; it's just liberal for Texas.
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