Last week International Business Machine (IBM) announced plans to invest $150 billion in America over the next five years to fuel the economy and to accelerate its role as the global leader in computing. This includes an investment of more than $30 billion in research and development to advance and continue IBM's American manufacturing of mainframe and quantum computers.
"Technology doesn't just build the future — it defines it," said Arvind Krishna, IBM chairman, president and chief executive officer. "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities."
What is most interesting about Mr. Krishna’s remarks is that he specifically said the “investment will help accelerate America’s role as a global leader in computing and fuel the economy” an obvious nod to President Trump’s policy of rebuilding America’s manufacturing economy after the disastrous Biden years.
Mr. Krishna further noted IBM operates the “world’s largest fleet of quantum computer systems,” and will continue to build and assemble them in the U.S.
In a parallel development, IBM competitor Nvidia, the chipmaker that has been the primary benefactor of the artificial intelligence boom, announced a similar push to produce its NVIDIA AI supercomputers entirely in the U.S.
Nvidia plans to produce up to $500 billion of AI infrastructure in the U.S. via its manufacturing partnerships over the next four years.
In addition to the multibillion-dollar investments by tech giants IBM and Nvidia, the White House released a list of major manufacturing investment commitments made since President Trump’s tariff policy went into effect:
- The Wall Street Journal: Trump’s Tariffs Are Lifting Some U.S. Manufacturers
- The Washington Post: This U.S. manufacturer doesn’t mind Trump’s tariffs at all
- Bristol Myers Squibb announced a $40 billion investment over the next five years in its research, development, technology, and U.S.-based manufacturing operations.
- Gilead Sciences announced an $11 billion boost to its planned U.S.-based manufacturing investment.
- Invenergy announced a $1.7 billion investment in U.S. electric transmission.
- Merck Animal Health announced an $895 million investment to expand their manufacturing operation in Kansas.
- Wistron Corp., a Taiwanese electronics manufacturer and AI server maker, announced $455 million in additional U.S. investment.
- Lego announced a $366 million investment to build a new distribution center in Prince George County, Virginia.
- Hotpack, a Dubai-based maker of food packaging materials and related products, announced a $100 million investment to establish its first U.S. manufacturing facility in Edison, New Jersey.
"The primary components of the Trump economic agenda - trade, tax cuts, and deregulation - are not standalone policies. They are interlocking parts of an engine designed to drive long-term investment in the American economy," Treasury Secretary Bessent explained in recent remarks to the Milliken Institute.
Bessent said that Trump's tariff blitz since taking office for a second time on January 20 was engineered to encourage companies like those attending the conference to invest in the U.S., build factories and make products in the U.S.
This effort would be rewarded with tax and deregulation benefits, Bessent said. Trump's tax legislation would provide tax credits and deductions for research and innovation into high-tech operations, restore 100% expensing for equipment while expanding this benefit to new factory construction to accelerate investment, he added.
"The result of the president's economic plan will be more. More jobs, more homes, more growth, more factories, more critical manufacturing plants, more semiconductors, more energy, more opportunity, more defense, more economic security, more innovation," Bessent said.
- U.S.-U.K. trade deal
- Trump trade policy
- tariffs
- IBM
- Nvidia
- U.S. farm products
- Treasury Secretary Bessent
- WW II Victory Day
- U.S. exports
- U.S. energy exports
- United Kingdom’s Prime Minister Kier Starmer
- Ethanol
