Johnson & Johnson has committed to investing over $55 billion within the United States over the next four years, with plans to establish four new manufacturing facilities. This announcement aligns with the recent trend of companies boosting their investments in the U.S., a focus encouraged by the policies of the previous administration. Notably, Eli Lilly and Co., a competitor to Johnson & Johnson, had already revealed in February their intention to construct four new plants domestically. Both pharmaceutical companies have attributed their decision, in part, to the tax legislation reforms passed in 2017.
Johnson & Johnson stated on Friday that this planned investment represents a 25% increase compared to its investment activity during the past four years. The company estimates that the impact on the U.S. economy will exceed $100 billion annually. Joaquin Duato, the Chairman and CEO of Johnson & Johnson, expressed that this expansion starts with a new high-tech facility in North Carolina, aimed at creating jobs and producing innovative medications for patients across America and globally.
The North Carolina facility will be located in Wilson, just east of Raleigh, though the sites for the other three facilities have not been disclosed. Aside from developing new plants, the company intends to expand several existing operations and invest in research and development infrastructure and technology enhancements.
Johnson & Johnson’s strategy is part of a broader movement among companies to increase their manufacturing presence in the United States. Earlier in the month, Taiwan Semiconductor Manufacturing Co., a major player in the chip industry, announced its plans to invest $100 billion in the U.S., building upon $65 billion in previously declared investments.
In February, Apple unveiled its plans to invest more than $500 billion in the U.S. over the next four years, which includes adding 20,000 jobs and developing a new server factory in Texas. Apple’s announcement detailed various steps to enhance its U.S. operations, notably the construction of a new facility in Houston set to commence operations in 2026. This factory will manufacture servers intended for Apple Intelligence, a suite of AI features.
