Apple will build its next manufacturing facility in Arizona, Gov. Jan Brewer announced this week.
The facility in Mesa will create at least 700 jobs in the first year, Brewer said, as well as approximately 1,300 construction and other jobs.
"Apple is indisputably one of the world's most innovative companies and I'm thrilled to welcome them to Arizona," Brewer said. "Apple will have an incredibly positive economic impact for Arizona and its decision to locate here speaks volumes about the friendly, pro-business climate we have been creating these past four years."
Apple's "investment in renewable energy will also be greening our power grid, and creating significant new solar and geothermal power sources for the state," she continued.
Apple will work with GT Advanced Technologies on the project. Neither the governor nor GT provided details on exactly which Apple products the new facility will manufacture.
In a statement, Apple said it is "proud to expand our domestic manufacturing initiative with a new facility in Arizona, creating more than 2,000 jobs in engineering, manufacturing and construction. This new plant will make components for Apple products and it will run on 100 percent renewable energy from day one, as a result of the work we are doing with SRP to create green energy sources to power the facility."
As part of a multi-year agreement with Apple, GT will own and operate advanced sapphire furnaces (ASF) and related equipment. Apple will provide GT with a $578 million pre-payment, which GT will pay back over five years, starting in 2015.
According to GT's website, its ASF "is the ideal platform for producing high-quality, large-area sapphire substrates for markets that demand the highest grade sapphire material such as high brightness LEDs and other specialty industrial markets."
The Apple website says the Touch ID home button on the new iPhone 5s is "made from laser-cut sapphire crystal, the surface of the button directs the image of your finger to a capacitive touch sensor, which reads beneath the outer layers of your skin to get a detailed print."
According to Cantor Fitzgerald analyst Brian White, "sapphire is much more expensive than Gorilla Glass, heavier, and has other shortcomings; however, it is widely viewed as more difficult to scratch."
"Today, we believe Apple uses sapphire to protect the camera on new iPhones and on the Touch ID home button on the iPhone 5s," he continued. "As such, we believe sapphire could be well suited for a high-end device and/or small form factor devices" - like the rumored iWatch.
"Ultimately, we believe Apple will further segment the iPhone market with an ultra-high-end iPhone, which would be less price sensitive and another potential use case for sapphire," White said. "Today, GTAT manufactures sapphire for use in general lighting, while new growth areas are emerging such as camera lenses and mobile device-related applications."
While most Apple gadgets are produced overseas, particularly in China with the assistance of Foxconn, Apple chief Tim Cook promised last year that "some production" on the Mac would move to the U.S. The company also has a plant in Elk Grove, Calif.
Editor's Note: This story was updated at 2:05 p.m. ET with comment from Apple.