IBM to Invest $150 Billion in US Manufacturing Over Five Years

IBM, one of the world’s leading technology companies, has announced plans to invest $150 billion in domestic manufacturing within the United States over the next five years. The company’s significant commitment highlights a growing trend among tech giants to prioritise investments in their home countries amidst shifting global trade dynamics.

The funds will include $30 billion allocated specifically toward the research and development of IBM’s mainframe and quantum computing technologies. These cutting-edge systems, which utilise the principles of quantum mechanics, are at the forefront of advanced computing and artificial intelligence capabilities. IBM already operates the largest fleet of quantum computers globally, cementing its position in this high-tech industry.

Arvind Krishna, IBM’s chairman and chief executive, emphasised the company’s longstanding ties to American jobs and manufacturing, citing its roots dating back over a century. Founded in 1911 as the Computing-Tabulating-Recording Company before becoming International Business Machines in 1924, IBM is reaffirming its dedication to boosting its domestic operations in the face of economic and political challenges.

IBM’s strategic focus comes as other technology giants follow suit. Rival Nvidia recently announced a $500 billion investment in the US to build supercomputing infrastructure, while Apple is set to spend $500 billion expanding production facilities across nine American states. Such moves reflect a broader shift towards revitalising domestic supply chains in response to tariffs and geopolitical pressures.

Despite the promising news, IBM faced setbacks earlier this year, including the loss of 15 government contracts worth approximately $100 million under cost-cutting measures by the US administration. Although these cancellations represented less than 1 per cent of IBM’s consulting backlog, the impact served as a reminder of the obstacles faced by companies relying heavily on public sector clients.

While the global tech landscape continues to evolve, IBM’s strategy to drive innovation and investment domestically appears to position it firmly at the centre of the next phase of advanced computing. The company’s efforts aim to ensure it remains competitive in a fast-paced industry where US-based manufacturing is becoming a critical priority.