Latest Cover Story | Where Does “Made in America” Get Stuck? (AI Translation)
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文｜财新周刊 刘沛林 卢羽桐 余聪 赵煊
By Caixin Weekly's Liu Peilin, Lu Yutong, Yu Cong, and Zhao Xuan
文｜财新周刊 刘沛林 卢羽桐 余聪 赵煊
By Caixin Weekly’s Liu Peilin, Lu Yutong, Yu Cong, Zhao Xuan
美东时间5月12日，中美经贸高层会谈达成重要共识并取得实质性进展后，美国总统唐纳德·特朗普就迫不及待地向外界宣称，随着中美关税互降，苹果公司会扩大在美国投资：“我今早刚和蒂姆·库克（Tim Cook）通话，我认为他还会提高此前公布的5000亿美元的投资计划，会在美国建设很多工厂。”
On May 12, Eastern Time, following significant progress and major consensus reached at the high-level China-U.S. economic and trade talks, U.S. President Donald Trump was quick to announce to the public that, with the mutual tariff reductions between China and the U.S., Apple Inc. would expand its investments in the U.S.: “I just spoke with Tim Cook this morning. I believe he will increase the previously announced $500 billion investment plan and build many factories in the United States.”
今年2月，苹果宣布未来四年在美国投入超过5000亿美元，除了在多地扩大团队和设施，还将在得州新建一座工厂，以对美国先进制造投入加倍的支持。
In February this year, Apple announced plans to invest more than $500 billion in the United States over the next four years. In addition to expanding its teams and facilities in multiple locations, the company also revealed plans to build a new factory in Texas, doubling down on its support for advanced manufacturing in the U.S.
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- Despite U.S. government efforts—tariffs, subsidies (CHIPS Act, IRA), and policy shifts under Trump and Biden—to reshore manufacturing (especially in semiconductors, autos, and clean energy), actual manufacturing output and capacity growth in the U.S. have slowed in 2024.
- Major barriers remain: high labor and construction costs, worker shortages (622,000 vacancies in 2024), weak supply chains, and low venture capital investment (3% in manufacturing vs. 43% in China).
- Many announced foreign investments face delays or cancellations; Foxconn’s $10B Wisconsin project, for instance, was reduced by 84% and created a fraction of promised jobs.
Summary
The renewed U.S. effort to reshore manufacturing and reduce dependence on foreign supply chains, particularly those in China, has spurred several large investment announcements from major technology, pharmaceutical, and automotive firms, yet faces deep-rooted structural and practical challenges that cloud its long-term success. [para. 1]
Following high-level trade negotiations and mutual tariff reductions between the U.S. and China in May 2024, President Trump declared that Apple would boost its U.S. investment beyond the previously announced $500 billion over four years, expanding teams, facilities, and establishing a new Texas factory. About 30% of Apple's iPhone revenue comes from the U.S., while production remains in Asia; the company has been acutely vulnerable to Trump-imposed tariffs. Nvidia and Taiwanese partners also pledged AI manufacturing investments worth $500 billion over four years in Texas; the U.S. government’s repeal of the “Artificial Intelligence Proliferation Rule” eased export restrictions, enabling Nvidia to announce major overseas GPU sales, which buoyed its share price. [para. 1][para. 2][para. 3][para. 4]
Trump’s tariff escalation strategy also targets pharmaceuticals, the automotive industry, and new energy sectors, with the goal of incentivizing foreign and domestic investment. Pharmaceutical giants such as Roche ($50 billion), Novartis ($23 billion), Eli Lilly ($27 billion), and Merck ($9 billion by 2028) each announced substantial U.S. expansions, often under White House pressure for both investment and lower drug prices. [para. 5][para. 6][para. 7][para. 8]
Other multinationals, including IBM, TSMC, Hyundai, Amazon, and LEGO, as well as sovereign wealth funds from the UAE ($1.4 trillion), Qatar ($1.2 trillion), Saudi Arabia ($600 billion), Japan ($1 trillion), and Taiwan, also pledged massive future U.S. investments. [para. 9][para. 10]
Consultancy Kearney highlights a two-pronged tariff approach: persistent high tariffs on strategic sectors (pharmaceuticals, semiconductors, autos), with selective exemptions for exports, while lowering tariffs elsewhere to sustain trade flows and bolster tax revenue. Despite ambitious reshoring rhetoric and policy—inclusive of those from the Obama, Trump, and Biden administrations—U.S. manufacturing output growth has slowed significantly. The Reshoring Index projects just 1% output growth in 2024, down from 30% annual growth between 2020 and 2022, as robust investment has not yet resulted in production capacity, and imports from low-cost Asian regions have surged by 10% year-on-year. Key challenges include production costs, talent shortages, and operational resilience. [para. 11][para. 12][para. 13][para. 14][para. 15][para. 16]
The semiconductor sector, centerpiece of U.S.-China technological rivalry, has seen pledged investments by TSMC, Intel, Samsung, and others fueled by the $52.7 billion CHIPS Act subsidies. Yet, subsidy disbursal has lagged, and Trump now calls for repealing the CHIPS Act, arguing tariffs alone suffice to induce investment. TSMC’s $165 billion U.S. expansion forms the foundation of Trump's reshoring narrative, though financial filings reveal poor profitability for its Arizona plant compared to China operations, and analysts argue U.S. incentives—not tariffs—are the primary driver. [para. 17][para. 18][para. 19][para. 20][para. 21][para. 22]
The automotive sector faces added cost pressures from new 25% tariffs on imported vehicles and parts, with only limited offsetting measures. Multinationals like Mercedes-Benz and BMW are expanding U.S. operations but warn of profit hits ($2.5 billion at Ford, $4–5 billion at GM), mainly due to higher labor costs and only modest expected employment gains due to automation. [para. 23][para. 24][para. 25][para. 26][para. 27]
Trump’s skepticism toward new energy is in stark contrast to Biden’s $370 billion climate investment package. While domestic battery and solar investments have increased, policy reversals and tariff uncertainty threaten clean energy expansion and discourage investment, particularly from Chinese firms. [para. 28][para. 29][para. 30][para. 31][para. 32][para. 33]
A growing number of high-profile foreign investments (e.g., Foxconn’s Wisconsin project) have been delayed, downsized, or abandoned due to labor costs, regulatory delays, supply chain weaknesses, and vast workforce shortages—challenges not solved through tariffs, incentives, or political will. Manufacturing FDI slumped by a third to $42.9 billion in 2023, its lowest in a decade. Worker shortfalls are critical: over 622,000 jobs in manufacturing remain unfilled, with projections of 1.9 million vacancies by 2033 if trends persist, due to both generational and skills gaps. [para. 34][para. 35][para. 36][para. 37][para. 38][para. 39]
Ultimately, the U.S. faces formidable barriers to reviving domestic manufacturing, including high costs, labor shortages, underdeveloped supply chains, and a cultural shift away from manufacturing values, meaning that policy ambitions have yet to yield significant, sustainable results. [para. 40][para. 41][para. 42][para. 43][para. 44][para. 45][para. 46]
- Apple Inc.
- According to the article, Apple announced in February it would invest over $500 billion in the U.S. over four years, including building a new factory in Texas. About 30% of Apple’s iPhone revenue comes from the U.S., but production mainly occurs in China, Vietnam, and India. Apple was significantly impacted by Trump’s tariffs, with its stock dropping over 24% after their announcement but rebounding 6% after a U.S.-China agreement.
- NVIDIA
- NVIDIA announced investments in the US, partnering with Foxconn and Wistron to build AI server factories in Texas. TSMC is also producing NVIDIA AI chips in Arizona, aiming to establish a full-chain AI infrastructure worth $500 billion in four years. Although the US government initially restricted high-power GPU exports, it has started procedures to repeal these rules, boosting NVIDIA’s prospects. Following these developments, NVIDIA’s stock surged over 5% on the related announcement day.
- Foxconn
- Foxconn announced a $10 billion LCD factory investment in Wisconsin in 2017, aiming to create up to 13,000 jobs, with President Trump attending the groundbreaking as a major achievement. However, the project faced slow progress, significant downsizing, and criticism over local issues. By 2021, investment dropped to $1.573 billion and created only 1,454 jobs—about 10% of the original target, with downgraded technology and much lower impact than promised.
- Wistron
- According to the article, Wistron, a Taiwanese company, is partnering with NVIDIA to build an AI server factory in Dallas, Texas. This initiative is part of NVIDIA's announced investments to expand AI infrastructure manufacturing in the United States, aiming to establish a complete supply chain domestically.
- TSMC (Taiwan Semiconductor Manufacturing Company)
- TSMC has committed to increasing its investment in the US to a total of $165 billion, including six wafer fabs and R&D facilities in Arizona. Despite losses at its US plants due to higher costs and early stage eco-system, TSMC's expansions aim to meet local customer demand. Much of its US investment aligns with customer needs rather than directly responding to tariffs, and future large-scale investments may be flexibly adjusted.
- HUMAIN
- HUMAIN is an AI company under Saudi Arabia's Public Investment Fund. On May 13, after the U.S. government began procedures to repeal AI export restrictions, HUMAIN placed a large order with Nvidia, purchasing 18,000 advanced GPU cards, with plans to buy hundreds of thousands more in the future. This signals significant investment in AI infrastructure by Saudi Arabia through HUMAIN.
- Roche
- Roche, a Swiss pharmaceutical company, announced a $50 billion investment in the U.S. over the next five years, focusing on drugs and diagnostics, which will create 12,000 jobs. The move is part of a broader trend of pharmaceutical companies increasing investment in the U.S. to localize supply chains and technology platforms, in response to government pressure for investment and drug price reductions.
- Novartis
- According to the article, Swiss pharmaceutical company Novartis announced plans to invest $23 billion in the U.S. over the next five years to either build new or expand existing production facilities. Novartis’ CEO stated these investments aim to fully bring supply chains and key technology platforms into the U.S., supporting strong growth prospects in the American market.
- Eli Lilly
- According to the article, Eli Lilly, an American pharmaceutical company, has pledged to invest $27 billion to build four new factories in the United States. This move is part of a broader trend of multinational pharmaceutical companies increasing investments in the U.S. in response to policy pressures aimed at reducing drug costs and encouraging local manufacturing.
- Merck KGaA
- According to the article, Merck KGaA, a German innovative pharmaceutical manufacturer, announced a new $1 billion investment to build a vaccine factory in the United States and plans to invest an additional $8 billion in the U.S. by 2028. This move is part of a broader trend of multinational pharmaceutical companies increasing investments in the U.S. amidst political and economic pressures.
- IBM
- According to the article, IBM is listed among the multinational companies that have announced new investment in the United States during Trump’s second term. This information was updated on the White House website as of May 16, indicating IBM's participation in the broader trend of increased investment commitments in the U.S. by both domestic and international corporations. No further specific details about IBM’s investment are provided in the article.
- Johnson & Johnson
- According to the article, Johnson & Johnson is among the multinational companies that have announced additional investment in the United States during Trump’s second term. The company is listed alongside others such as IBM, TSMC, Mercedes, Hyundai, Amazon, and LEGO as part of the increased domestic investment trend promoted by the Trump administration’s policies to encourage manufacturing and supply chain reshoring to the U.S.
- Stellantis
- According to the article, Stellantis is among the multinational companies that have announced new investments in the United States during Trump's second term. Additionally, Samsung SDI and Stellantis are jointly building battery factories in Indiana, with a combined investment exceeding $6 billion. These efforts reflect Stellantis's increased commitment to localizing manufacturing in response to U.S. industrial policies and tariffs.
- Mercedes-Benz
- According to the article, Mercedes-Benz is adjusting its U.S. operations in response to Trump’s auto tariffs. On May 1, the company announced plans to increase production of a model at its Alabama plant, which is already a key export base for its SUVs—about 60% are for export. The U.S. is Mercedes-Benz’s second-largest market after China, accounting for over 15% of its global sales.
- Hyundai Motor Company
- According to the article, Hyundai Motor Company is among the multinational companies that have announced new investments in the United States during Trump’s second term. The White House website, updated on May 16, lists Hyundai as one of several global firms—alongside IBM, TSMC, Mercedes-Benz, Amazon, and others—committing to increased investment in U.S. operations. No further details about Hyundai’s specific projects are provided in the article.
- Amazon
- According to the article, Amazon is listed among the multinational companies that have announced new investments in the United States during Trump’s second term. This is in the context of a broader trend of global companies increasing their U.S. investments amid trade policy changes, tariffs, and efforts to promote manufacturing back to America. No specific investment figures for Amazon are provided in the article.
- Kraft Heinz
- According to the article, Kraft Heinz is among the multinational companies that have announced new investments in the United States during Trump’s second term, as updated on the White House website on May 16. The article lists Kraft Heinz alongside companies like IBM, TSMC, Johnson & Johnson, Stellantis, Mercedes-Benz, Hyundai, Amazon, Corning, and LEGO. Specific investment amounts or project details for Kraft Heinz are not provided.
- Corning
- According to the article, Corning is among the multinational companies that have announced new investments in the United States during Trump’s second term. Alongside companies like IBM, TSMC, Johnson & Johnson, Stellantis, Mercedes-Benz, Hyundai, Amazon, Kraft Heinz, and LEGO, Corning is part of a wave of increased corporate commitments to invest in U.S. manufacturing and operations, driven by changing trade and industrial policies.
- LEGO
- According to the article, LEGO is among the multinational companies that have announced new investments in the United States during Trump’s second term. This is part of a broader trend of international firms increasing their U.S. investments, as highlighted by recent White House updates.
- Samsung
- According to the article, Samsung SDI, a Korean battery producer, is considering building a standalone factory in North America. Previously, it announced joint ventures with General Motors and Stellantis to construct factories in Indiana. Together with Stellantis, Samsung SDI has completed another factory, with both projects totaling over $6 billion in investment. This expansion aims to support the growing demand for electric vehicle batteries in the U.S. market.
- Intel
- According to the article, Intel received $7.86 billion in cash subsidies under the CHIPS Act to expand production at four U.S. factories but later reduced its 2024 capital spending target due to uncertain government subsidy disbursement. In Q1 2025, Intel received only $1.1 billion in subsidies. The company delays new investments until existing capacity is fully utilized, with the Ohio plant's completion pushed to 2030 due to funding issues.
- GlobalFoundries
- According to the article, GlobalFoundries is a U.S.-based semiconductor company that announced it would receive up to $1.5 billion in subsidies from the U.S. government under the CHIPS Act. The subsidies are intended to support the expansion and equipment upgrades at its U.S. manufacturing facilities.
- Micron
- According to the article, in December 2024, Micron, one of the world’s top three memory chip makers, announced it had received $6.165 billion in subsidies from the U.S. government to support its U.S. factory expansion and equipment upgrades under the CHIPS Act.
- SK Hynix
- According to the article, SK Hynix is one of the global memory chip giants that received subsidies from the U.S. government in December 2024—specifically, $4.58 billion—to support its manufacturing expansion in the United States as part of the CHIPS Act initiatives.
- Wolfspeed
- Wolfspeed, a leading third-generation semiconductor manufacturer in the U.S., did not receive formal government subsidy authorization during the Biden administration. Concerns arose that its subsidy might be withdrawn, causing the company’s stock to plunge over 51% on March 28, reaching its lowest point since 1998. Due to weak demand and lack of subsidy funds, Wolfspeed faced operational difficulties, cut spending, and has been silent about its expansion plans in North Carolina.
- BMW
- BMW is the largest U.S. automotive exporter by export value. In 2024, the U.S. is BMW’s second-largest single market after China. To respond to Trump’s auto tariffs, BMW plans to increase capacity at its South Carolina plant by adding more shifts. BMW estimates 2025 pre-tax profits will be flat, with a 5–7% automotive margin, and expects that higher tariffs may be temporary.
- Ford Motor Company
- According to the article, Ford Motor Company is significantly impacted by Trump’s 2025 auto tariffs. Although 80% of Ford’s cars are manufactured domestically, the company expects a $2.5 billion profit loss in 2025 due to these tariffs, even after implementing cost-cutting measures, with an estimated net loss of $1.5 billion. This highlights the heavy cost pressures that U.S. trade policies impose on automotive manufacturers, including Ford.
- General Motors
- According to the article, General Motors (GM) faces significant challenges from Trump's auto tariffs. Around half of GM's models sold in the U.S. are imported, such as the Chevrolet TRAX from Korea. GM estimates that the 2025 tariffs could cut profits by $4–5 billion. This impact is greater than for Ford, which manufactures most of its vehicles domestically.
- Chevrolet
- According to the article, General Motors (GM) sells about half of its vehicles in the U.S. that are imported from overseas factories, with the Chevrolet TRAX, a popular budget model, produced in South Korea. Due to Trump's auto tariffs, GM expects a profit impact of $4–5 billion in 2025.
- SK On
- SK On is a Korean battery producer. In March 2024, it signed a supply agreement with Nissan to provide nearly 100 GWh of high-nickel batteries to Nissan’s assembly plant in Mississippi from 2028 to 2033, creating 1,700 U.S. jobs with a $661 million investment. SK On operates two battery plants in the U.S. and is building four more with partners, expecting over 180 GWh of annual U.S. production capacity once fully operational.
- Nissan
- According to the article, in March, Korean battery producer SK On signed a battery supply agreement with Nissan. From 2028 to 2033, SK On will supply nearly 100 GWh of high-nickel batteries for Nissan's electric vehicle assembly plant in Mississippi, USA. This deal will create 1,700 jobs and involves a total investment of $661 million.
- Samsung SDI
- According to the article, Samsung SDI's CEO Joo Sun Choi revealed in March that the company is considering independently building a new factory in North America. Previously, Samsung SDI announced joint ventures with General Motors and Stellantis to build battery factories in Indiana and another plant with Stellantis, with a total investment exceeding $6 billion.
- Clarios
- Clarios, a battery storage company headquartered in Wisconsin, accelerated its domestic expansion in 2024. In May, it announced a $6 billion investment plan to expand the production of battery chemicals, recycle key minerals like antimony and tin from used batteries, and develop advanced manufacturing technologies. Clarios, like other U.S. companies, faces challenges from Trump’s pro-fossil energy stance and policy uncertainty, which could slow growth.
- Fluence Energy
- Fluence Energy is a leading U.S. energy storage company. According to the article, in May 2025, Fluence lowered its revenue forecast for the fiscal year by 16%–24%, citing delays and suspensions of U.S. projects due to policy and tariff uncertainties, as well as clients postponing contracts until the trade environment becomes clearer. This reflects challenges facing the U.S. energy storage industry amid shifting trade and policy landscapes.
- JinkoSolar
- JinkoSolar, a leading Chinese solar company, publicly stated in September 2024 that its factory in Florida received tax credits under the U.S. Inflation Reduction Act (IRA), making it the first Chinese solar company to obtain such incentives. The plant has 400 MW annual capacity, and an additional 2 GW of new U.S. capacity is also pursuing related subsidies.
- LONGi Green Energy
- LONGi Green Energy, a leading Chinese photovoltaic company (stock code 601012.SH), has established a joint venture factory in the U.S. with a 5GW production capacity, which began operations in Q1 2024. However, due to policy uncertainties in the U.S., such as Trump’s stance on new energy and the sustainability of IRA subsidies, LONGi and other solar companies remain cautious about further expanding in the U.S. market.
- Canadian Solar
- Canadian Solar (阿特斯, stock code 688472.SH) is a leading Chinese photovoltaic (PV) company. According to the article, Canadian Solar is among several major Chinese solar firms, including JinkoSolar and LONGi, that have established manufacturing plants in the United States to access the American market. This strategy is partly driven by opportunities for subsidies under U.S. policies, though policy uncertainty remains a concern for future investments.
- Trina Solar
- According to the article, Trina Solar (天合光能) is one of several major Chinese photovoltaic companies investing in factories in the United States. Its American joint venture factory, with a 5GW production capacity, began operations in the first quarter of 2024. However, due to the shifting U.S. policy environment and uncertainties about tariffs and incentives, the company and its peers are becoming more cautious about further U.S. investment decisions.
- GCL Technology
- GCL Technology (协鑫科技, 03800.HK), a polysilicon manufacturer, is cautious about U.S. investment due to significantly higher costs compared to the Middle East or China. Chairman Zhu Gongshan stated that U.S. plants cost about one-third more than those in the Middle East, which are already one-third costlier than in China. The company is discussing a small-scale silane project in the U.S., serving both semiconductor and photovoltaic industries, based on customer demand.
- Viahart
- Viahart is a U.S. toy company mentioned in the article. Its founder, Molson Hart, wrote an article summarizing 14 reasons why Trump's tariffs would not revive American manufacturing. He highlighted issues such as weak supply chains, poor infrastructure, slow factory construction, labor shortages, and lower labor quality in the U.S. compared to China, and emphasized the irreplaceable work ethic and skills of Chinese manufacturing workers.
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