Nokia has unveiled a major plan to expand its U.S. research, development, and manufacturing footprint, announcing an investment of $4 billion aimed at accelerating innovation in AI-ready mobile, fixed access, IP, optical, and data center networking technologies.
Finland-based Nokia has 9,300 employees in North America. Nokia’s North America business has generated 5.381 billion euros in revenue in 2024 as compared with 5.733 billion euros in 2023.
This week, Nokia has revealed the resignation of Tommi Uitto, President of Mobile Networks, as part of a major restructuring. Mobile Networks is a 11.6 billion euro business for Nokia.
Nokia earlier said its Mobile Networks business will be positioned for core and radio network technology and services leadership to lead the industry to AI-native networks and 6G.
Telecom industry association GSMA recently said the United States will be one of the key markets to go ahead with 6G investments. FCC, the telecom regulator in the United States, is also gearing up for auction of spectrum to bolster 6G.
This multi-year commitment builds on Nokia’s earlier $2.3 billion investment in U.S. manufacturing, R&D, and AI connectivity following its acquisition of Infinera.
In addition, Infinera had previously confirmed a $456 million investment for two manufacturing facilities, supported by CHIPS Act incentives. Together, these initiatives position Nokia as a major contributor to strengthening domestic capabilities in advanced networking and semiconductor-related technologies.
A significant portion of Nokia’s new investment, around $3.5 billion, will go toward U.S. R&D projects. This reflects Nokia’s long-term strategy to drive advancements across the entire network ecosystem, including mobile, fiber broadband, IP routing, optical transport, data center networking, and mission-critical and defense solutions.
Nokia will continue to build on the legacy of its Nokia Bell Labs in New Jersey, a research powerhouse known for groundbreaking contributions from the invention of the transistor to modern advancements in digital communications and AI.
Around $500 million of the investment will be directed toward capital expenditures for manufacturing and R&D in states such as Texas, New Jersey, and Pennsylvania. These funds will support facility modernization, advanced testing environments, and new production capabilities.
The expanded U.S. investment will enhance Nokia’s portfolio of AI-optimized networking solutions and reinforce its leadership in areas such as network automation, quantum-safe communications, semiconductor manufacturing and packaging, and advanced material sciences.
U.S. Secretary of Commerce Howard Lutnick welcomed the announcement, calling it a major win for American innovation. He emphasized that Nokia’s investments in optical chip production, packaging, and advanced R&D will ensure cutting-edge technologies for AI, data centers, and national security are developed and manufactured within the United States.
Nokia President and CEO Justin Hotard highlighted the strategic importance of the initiative, noting that Nokia technologies form the foundation of critical network infrastructure worldwide. He said the expanded investment will boost security, productivity, and nationwide AI-enabled connectivity while steering the next wave of innovation that will define the future of networking.
Baburajan Kizhakedath
