US Secretary of Commerce: the most innovative tech to power AI, data centers and critical national security will be developed and built in the USA
In press statement, Nokia says “in collaboration with the Trump administration”, it plans to expand its US R&D and manufacturing capabilities. It will invest $4 billion (€3.47 billion) to accelerate innovation “in AI-ready mobile, fixed access, IP, optical, and data center networking technologies”.
The planned investment is over unspecified “multiple years ” and “is in addition to Nokia’s $2.3 billion investment in US manufacturing, R&D, and AI connectivity through its purchase of Infinera”. Infinera has already pledged $456 million investment for two US manufacturing facilities, which received CHIPS Act incentives.
Nokia expects to invest around $3.5 billion in US R&D, “reflecting the company’s strong commitment to advancing the next generation of connectivity and AI technology across all facets of the network, including mobile, fixed, IP, optical, data center networking technologies, and mission-critical/defense solutions. Nokia is committed to continuing the creation of groundbreaking technologies in the US, “following in the footsteps of its award-winning Nokia Bell Labs headquartered in New Jersey”.
About $500 million will be invested in manufacturing and R&D in states that including Texas, New Jersey and Pennsylvania.
Strengthening portfolio and perception?
Nokia claims the US investment plan will strengthen its comprehensive suite of AI-optimised networking solutions, as well as its industry-leading R&D in advanced networking technologies, including automation, quantum-safe networks, semiconductor manufacturing, testing, and packaging, and state-of-the-art material sciences.
Presumably it also hopes the investment will make it a more attractive proposition to US customers of all [stars and] stripes in the public and private sectors, even is $4 billion is a drop in the ocean compared to the billions of dollars being poured into Europe by US hyperscalers.
Howard Lutnick, US Secretary of Commerce, piped up, “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, stated, “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.”
Hotard is the first American to lead Nokia. Before joining the Finnish network equipment maker and software house, he oversaw the Data Center and AI Group at Intel.
