OPINION:
Since President Trump took office in January, some of the world’s largest and most prominent companies have made a clear choice: They are staking their future on a growing presence in the United States. Many of these companies are in the tech sector, and it’s welcome news as the U.S. seeks to secure its leadership position in the race for global technological dominance.
The running tally of new investments to make technology products in America is long, and the investments are substantial. The White House just launched a website called “The Trump Effect,” which lists more than $5 trillion of investments since Mr. Trump began his second term.
SoftBank, OpenAI and Oracle announced a $500 billion investment in America, as did Apple.
Nvidia also has plans to spend $500 billion as part of an effort to build American-made artificial intelligence supercomputers for the first time. IBM is ready to lay out $150 billion in America to strengthen its position as a global leader in computing. TP-Link Systems, a California-based manufacturer of routers and network security devices, has announced $700 million in American investment to build a factory and supercharge research and development for routers here in the U.S. The list goes on.
The founder of TP-Link Systems, Jeffrey Chao, made it clear the choice that virtually all technology companies face. He said he had to decide whether to build his business here in America or in China. His answer was clear: “I have chosen the U.S.”
Technology executives’ decisions to strengthen and expand their U.S. footprint make smart business sense. The reality is that America is the world’s largest national economy, larger than China, Japan and European Union countries, despite accounting for less than 5% of the global population. Our market is the most enviable in the world. Tech companies are making strategic decisions to be closer to the American customers who are vital to their success.
Manufacturing jobs in the technology sector are the jobs of the future. Products that support American prowess in artificial intelligence, information technology and cybersecurity are critical to national competitiveness. These industries offer the U.S. enormous economic opportunities. The global market for security products alone is expected to hit $200 billion over the next three years.
Mr. Trump has opened the door for this flood of new investment to strengthen American leadership in technology. Even before the start of his second term, he made a bold commitment: to expedite approvals and permits for any business or individual that invests $1 billion or more in the U.S. Leading the charge for what he calls a new “Golden Age of American innovation,” Mr. Trump is working to cut red tape and remove regulatory barriers that make it needlessly difficult to invest in American manufacturing and research and development.
Make no mistake: Regulatory relief is essential to expanding manufacturing in America. According to the National Association of Manufacturers, compliance with federal regulations costs manufacturers nearly $30,000 per employee, substantially higher than the $12,800-per-worker cost for all firms in total. With the full cost of regulatory compliance topping $3 trillion as of 2022, the president is rightfully prioritizing regulatory relief to get manufacturing investment off the sidelines.
Major investments from technology companies didn’t happen overnight. It’s a direct result of the Trump effect. This isn’t a new fight for Mr. Trump. He is working to revitalize manufacturing in the U.S., taking on the regulatory state and making a long-term effort to fundamentally change the conversation regarding global trade, steering it toward the U.S. Today, we are seeing the results of those efforts, with hundreds of billions of dollars in new American manufacturing investment in the tech space alone.
Building out America’s domestic technology supply chain is an essential part of establishing our nation’s long-term technological leadership. China seeks world domination, so this is as much of a national security issue as it is an economic issue. At a time of fierce global competition, technology companies that choose to boost manufacturing in the U.S. are sending a powerful signal that America is the place to be for innovation. Producing more servers, supercomputers and routers in the U.S. will help lay a strong foundation for future growth.
Correction: A previous version of this column misstated the amount Nvidia plans to spend on building AI computers. It is $500 billion.
• Sean Spicer is a former press secretary for President Trump.
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