Steve Jobs Warned 34 Years Ago About America Being 'Hollowed Out' By Foreign Manufacturing — A Concern Trump Now Echoes - Apple (NASDAQ:AAPL), Taiwan Semiconductor (NYSE:TSM)

More than three decades ago, Apple Inc. AAPL co-founder Steve Jobs sounded the alarm about America’s growing reliance on foreign-made technology components—an issue that's back in the spotlight as President Donald Trump renews his criticism of U.S. dependence on overseas manufacturing.

What Happened: In a 1991 interview, Jobs stated his concerns about the American tech industry losing control over critical hardware components, even as final assembly remained in the U.S.

"Even though most of the computers are assembled here in the United States, a significantly large number of the dollars… flows overseas," he said.

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Jobs pointed to three of the most expensive parts in computers at the time—displays, dynamic memory (DRAM), and hard disk drives—all of which were predominantly manufactured outside the U.S.

"Almost all of those dollars flow to Japan," he said, particularly referencing display panels and memory chips. "It's essential that we don't continue to be hollowed out as an industry," Jobs added.

At the time, the Apple co-founder also dismissed the idea that Wall Street was to blame for the lack of domestic investment in manufacturing infrastructure. "Raising the capital is not the problem, and Wall Street is not the problem," he said.

"The problem is that in many cases, the management of our companies is not from an engineering or manufacturing background anymore and may not appreciate the dependence we have on these underlying technologies."

Jobs underscored the danger of U.S. tech companies outsourcing critical technologies and simply acting as "final packagers" of products. "Ultimately, the providers of those components don't need the final packager. They can go directly to the consumer."

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Why It's Important: Trump has repeatedly vowed to restore American manufacturing and reduce reliance on Chinese supply chains, especially for semiconductors and critical tech.

Last month, Trump reportedly delivered a strong warning to pharmaceutical companies, urging them to relocate their manufacturing operations to the U.S. or risk being hit with tariffs.

On Wednesday, Trump announced a 25% tariff on auto imports to boost domestic production. While the administration argues that U.S. automakers can adapt, companies relying on global supply chains may face higher costs and reduced sales.

China's Huawei Technologies has now doubled AI chip yields following U.S. sanctions, and the Taiwan Semiconductor Manufacturing Company Ltd's TSM expansion in America has made Taipei concerned.

Trump has previously criticized Taiwan for allegedly harming U.S. semiconductor manufacturing. Reports also suggest Trump is considering scrapping the U.S. CHIPS and Science Act, which provides subsidies to boost domestic chip production and benefits companies like TSMC.

Apple has also doubled its U.S. advanced manufacturing fund from $5 billion to $10 billion to boost technology production in the country. The company is working with partners to build a new manufacturing facility in Houston, Texas, to produce servers that will power Apple Intelligence.

The U.S. manufacturing sector expanded for the second consecutive month in February 2025 but at a slower pace, with the Manufacturing PMI falling to 50.3% from 50.9% in January, missing market expectations.

Demand weakened as new orders and employment contracted, while production growth slowed sharply. Newly imposed tariffs drove costs higher, pushing prices up at the fastest rate since June 2022, highlighting concerns over rising inflationary pressures in the industry.

Image via Shutterstock

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