Apple Inc will be awarding an amount of $250 million to Corning Inc from a $5 billion fund dedicated to advancement of manufacturing in the United States, as announced the iPhone maker on Tuesday.
Corning is the supplier of glass to Apple to be used in its several products including Apple Watch and iPhone. And since the launch of first iPhone in 2007, the glass on every iPhone set has been provided by the Corning that makes those glasses in its plant at Harrodsburg, Kentucky.
Neither of the companies disclosed the terms or any details of the agreement. This is not for the first time when Apple made such agreement, as in the past, it has signed several long-term supply deals with its vendors, securing better prices and part supplies by providing upfront cash them, who utilize that capital to perform research and development work or up gradation of their factories.
Due the trade tension between the United States and Chine, Apple came affecting because of the clustering it has made in China, where it makes most of its devices and has been facing its supply chain increasingly intensifying over the past five years.
In the meantime, to offset the impact of newly imposed tariffs on imports from China, Apple came diverting its focus in the United States to increase its supplier base in the home country.
Apple established $1 billion fund for U.S. suppliers in 2017 and further enhanced the amount to $5 billion a year later. In 2018 alone, Apple has done a business of $60 billion with more than 9,000 suppliers in the United States, said the company.
Apple had already award $200 million to Corning in 2017 and adding that amount to the current award, Corning so far received a total of $450 million from Apple’s fund.