Apple and Corning did not disclose the terms of the transaction. In the past, Apple often reached long-term supply agreements with suppliers, and Apple provided cash in advance to suppliers to lock in the supply sources of parts and get better supply prices. After obtaining funds, suppliers will conduct research and development in turn, or upgrade their factories. With a few exceptions, Apple devices have been assembled in China for many years. At the same time, in the past few years, Apple has been emphasizing the need to strengthen its supplier base in the United States.
In 20 17, Apple established a supplier support fund in the United States, with the scale of 10 billion US dollars, and the amount increased to 5 billion US dollars one year later. The company said that in 20 18, it purchased products from more than 9,000 American suppliers and spent a total of $60 billion.
Together with $200 million in 20 17, Corning has now received $450 million from Apple's supplier support fund. Apple said in a statement that its spending in Corning supported 65,438+0,000 jobs in Corning, including about 400 manufacturing jobs in Corning's Kentucky factory.
Jeff Williams, Apple's chief operating officer, said in a statement, "This award highlights the common belief of Apple and Corning in the key role of creativity in creating industry-leading products, and also shows the pride of the two companies in using American innovation and advanced manufacturing to solve some of the most severe technical challenges in the world."
So far, Apple has paid suppliers $654.38 billion from the fund. In addition to Corning, it also awarded $390 million to Finisar Corp, a chip manufacturer that produces chips for Apple's facial recognition technology in Texas. In addition, a joint venture between Alcoa Corp and Rio Tinto's aluminum business received a financial reward of $654.38 million, which is dedicated to developing carbon-free aluminum smelting technology.