Nokia has announced a significant expansion of its investment in the United States, committing $4 billion to enhance its research and development (R&D) and manufacturing capabilities. This initiative aims to accelerate the company’s innovation in various technologies, including AI-ready mobile, fixed access, Internet Protocol (IP), optical, and data center networking.
The planned investment extends over multiple years and is in addition to Nokia’s prior commitment of $2.3 billion toward US manufacturing, R&D, and AI connectivity through its acquisition of Infinera. The latter had also previously pledged $456 million for two manufacturing facilities in the United States, benefiting from incentives under the CHIPS Act.
Strengthening Innovation in Key Technologies
Nokia anticipates that approximately $3.5 billion of this investment will be directed specifically towards US R&D. This reflects the company’s dedication to advancing connectivity and AI technology across all areas of its network offerings. These include mobile, fixed, IP, optical, and data center solutions as well as mission-critical and defense applications.
The company has a longstanding history of innovation in the US, particularly through its renowned Nokia Bell Labs, which is based in New Jersey. For over a century, this institution has been at the forefront of technological advancements, ranging from the invention of the transistor to significant contributions in digital communications and AI.
The new investment will allocate approximately $500 million in capital expenditures across various states, including Texas, New Jersey, and Pennsylvania. This funding will not only bolster Nokia’s suite of AI-optimized networking solutions but also enhance its R&D in advanced networking technologies such as automation, quantum-safe networks, and semiconductor manufacturing.
Government Support and Future Prospects
Secretary of Commerce Howard Lutnick praised Nokia’s commitment, stating, “Nokia’s $4 billion investment is another Trump administration win for America. Their investment in manufacturing, packaging, and R&D for optical chips means the most innovative technologies that power AI, data centers, and critical national security applications will be developed and built here in the USA.”
Nokia’s President and CEO, Justin Hotard, emphasized the importance of this expansion, noting, “Nokia innovation and technologies are foundational to today’s critical network infrastructure. Our expanded investment will help strengthen the nation’s capacity to deliver greater security, productivity, and prosperity through AI-optimized connectivity at scale, while advancing the newest research and innovation that will shape the future of networking for the years to come.”
This substantial investment underscores Nokia’s commitment to not only enhancing its technological capabilities but also fostering economic growth and innovation within the United States. As the company continues to evolve, its focus on AI and next-generation connectivity remains a priority, positioning it as a leader in the rapidly changing telecommunications landscape.
