Apple expands U.S. manufacturing pledge, pulling in a third portfolio name

Apple is expanding its effort to expand manufacturing in the United States by adding several new partners, including Qnity Electronics. It is a win-win situation for both Club companies and investors. Apple announced Thursday that chip material maker Qnity has joined the American Manufacturing Program alongside Face ID component supplier Cirrus Logic and sensor manufacturers Bosch and TDK, bringing more of its supply chain to U.S. soil. The iPhone maker said it plans to spend $400 million as part of these new programs by 2030. “At Apple, we believe in the power of American innovation and manufacturing, and we are proud to partner with more companies right here in the U.S. to produce critical components and cutting-edge materials for our products,” Apple CEO Tim Cook said in a press release. In August 2025, Apple unveiled its American Manufacturing Program in a stunning announcement in the Oval Office with President Donald Trump; It's a politically savvy move by Cook to give the company breathing room in the fight against Trump's tariffs and domestic production. At that time, Apple added an additional $100 billion to the $500 billion American investment commitment it made in February 2025; This commitment failed to keep the company in Trump's favor during the spring and early summer. Qnity now becomes the third Club name to join Apple's manufacturing initiative, alongside Broadcom and Corning. In fact, it was the creation of the American Manufacturing Program that sparked our interest in Corning's stock. Apple invested $2.5 billion in Corning to help the New York-based company increase production capacity of the glass used in iPhone and Apple Watch covers. As we looked into Corning, we learned more about the rapidly growing opportunity to provide fiber optic cables to data centers during the AI buildout, leading us to pull the trigger and initiate a position in October 2025. Broadcom, which re-entered the portfolio in August 2023, produces key radio frequency components for 5G communications in Apple devices. Qnity's relationship with Apple underscores its importance in the semiconductor supply chain, and we couldn't be happier with the close ties between the two companies. The chips cannot be made without special chemicals and materials, which Qnity supplies to companies such as Taiwan Semiconductor Manufacturing Company (TSMC). Apple is a major customer of TSMC's new Arizona chip factories. Apple is as good a partner as any company could hope for, thanks to its strong customer loyalty and large budget. This move increases our confidence in Qnity's ability to grow earnings. As Jim Cramer and Director of Portfolio Analysis Jeff Marks discussed on Thursday's Morning Meeting, Qnity remains cheap relative to its main rival, Entegris, despite its strong year-to-date performance. Qnity is trading at less than 32 times this year's earnings estimates, according to FactSet data; Entegris says this number is approximately 36. Although we prefer to talk business basics rather than politics, there's no denying that the Trump administration enjoys helping those who work in the White House. As a result, any company that can demonstrate a commitment to U.S. manufacturing will be less at risk of facing tough talk from Washington. With Thursday's Qnity news, one company in our portfolio looks a little safer from getting into hotter political water, and Apple looks to have a stronger, safer, more American supply chain. (Jim Cramer's Charitable Trust is long AAPL, Q, AVGO, and GLW. See here for a full list of stocks.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation's portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.