Ericsson said its factory in Lewisville, Texas, has started manufacturing its 5G base station for 5G service providers.
Ericsson expects the number of 5G subscriptions to reach 2.6 billion by the end of 2025, up from 13 million in 2019, with network coverage offering access to 65 percent of the world’s population.
The telecoms network equipment maker said that 5G subscriptions would account for 29 percent of all mobile subscriptions in 2025.
Ericsson, which competes with China’s Huawei and Finland’s Nokia, said North America is expected to lead the 5G uptake with 74 percent of anticipated mobile subscriptions in its region in six years, followed by North East Asia and Europe.
Ericsson plans to invest $238.30 million in Brazil to add a new assembly line dedicated to 5G network technology, supplying its Latin American operations. Ericsson is also planning a 5G equipment manufacturing unit in Poland.
Ericsson earlier said North America is the biggest market for 5G so far, boosting Ericsson’s sales, but the company said demand slowed in the fourth quarter of 2019 as the $26 billion merger between Sprint and T-Mobile hit their spending.
The first product manufactured at the factory is the millimeter-wave Street Macro solution, which is key to Ericsson’s 5G portfolio for its North American customers. All radio access components are housed in one lightweight enclosure, allowing service providers to rapidly grow 5G coverage in complex city environments.
The Street Macro solution, part of the Ericsson Radio System portfolio, is also helping to provide Ericsson’s 5G-enabled connectivity in the smart factory.
“With the first 5G base stations now rolling off the production line, we are on target this year to have the most fully automated, sustainable 5G smart factory in the U.S,” Erik Simonsson, head of the USA 5G Smart Factory, Ericsson, said.
Ericsson’s secure 5G connectivity will enable the smart factory with agile operations and flexible production, utilizing industrial solutions such as automated warehouses, connected logistics, automated assembly, packing, product handling and autonomous carts. Ericsson will initially employ approximately 100 people at the facility.
The USA 5G Smart Factory complements Ericsson’s global supply strategy, which ensures the company is working close to its customers through its American, European and Asian operations, securing fast and agile deliveries to meet customer requirements.
