TLDR
- Nokia plans to invest $4 billion in the United States for AI-driven network connectivity development and production
- The investment includes $3.5 billion for R&D and $500 million for manufacturing in Texas, New Jersey, and Pennsylvania
- This comes after Nokia received a $1 billion investment from Nvidia and follows a July profit warning related to tariffs
- The investment is separate from Nokia’s $2.3 billion Infinera acquisition spending
- Nokia will work with the Trump administration on the expansion plans
Nokia announced Friday it will invest $4 billion in United States operations. The investment targets research, development, and production of AI-driven network connectivity technology.
The telecom equipment maker will allocate $3.5 billion to R&D efforts. Another $500 million will go toward manufacturing and capital expenditures across multiple states.
Texas, New Jersey, and Pennsylvania will host the new facilities. Nokia already operates over a dozen sites in North America and owns Bell Labs in New Jersey.
The Finnish company introduced a new strategy Wednesday focused on streamlining operations with AI emphasis. CEO Justin Hotard joined Nokia from Intel earlier this year.
Hotard told Reuters Wednesday that Nokia’s network focus is on countries valuing Western technology. The U.S. currently lacks a major domestic telecom equipment manufacturer.
This leaves Nokia, Ericsson, and Samsung as the main options for American carriers. The investment comes as non-U.S. firms shift production to America to mitigate trade risks.
Strategic Timing and Government Relations
Finnish President Alexander Stubb said Nokia was discussed during an October meeting with President Donald Trump. Nokia will collaborate with the Trump administration on the expansion plans.
The company issued a profit warning in July. The warning was tied to tariffs and a weakening dollar affecting international operations.
The new investment is separate from Nokia’s $2.3 billion spent on acquiring Infinera. That deal included Infinera’s operations in U.S. manufacturing, R&D, and AI connectivity.
Investment Details and Focus Areas
The multi-year investment will target AI-optimized networking solutions. Nokia plans to expand R&D in advanced networking technologies including automation and quantum-safe networks.
The company will also invest in semiconductor manufacturing, testing, and packaging. State-of-the-art material sciences research is part of the plan.
Nokia expects the investment to accelerate innovation in AI-ready mobile technology. Fixed access, IP, optical, and data center networking technologies will also benefit.
Infinera’s previously announced $456 million investment for two U.S. manufacturing facilities received CHIPS Act incentives. Nokia shares hit a near 10-year high after Nvidia invested $1 billion in the company’s AI push.
The investment will strengthen Nokia’s comprehensive suite of networking solutions. The company operates in the AI-ready mobile, fixed access, IP, optical, and data center networking markets.
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