Nokia plans to expand its R&D and manufacturing footprint in the USA following a $4 billion investment with President Trump’s administration. The end goal of this strategy is to further accelerate AI-ready network infrastructure within the country.
The deal marks Nokia’s first major move since outlining a recent strategy revamp under CEO Justin Hotard, when it unveiled a new Mobile Infrastructure unit designed to advance the vendor’s AI-native network strategy.
The multi-year US plan adds to the vendor’s earlier $2.3 billion US commitment through its Infinera acquisition, in addition to the optical networking specialist’s $456 million manufacturing facility investments.
Around $3.5 billion of the spend is earmarked for US-based R&D, including networking technologies, defence applications, automation, quantum-safe networking and semiconductor technologies. A further $500 million will support manufacturing and R&D expansion in Texas, New Jersey and Pennsylvania.
Nokia positioned the investment as key to delivering more secure, energy-efficient, AI-ready networks, arguing it will help the U.S. and its allies maintain competitiveness as AI booms.
US commerce secretary Howard Lutnick said: “Nokia’s $4 billion investment is another Trump administration win for America”. He stated the plan ensures “the most innovative technologies that power AI, data centres, and critical national security applications will be developed and built here in the US”.
Nokia CEO Justin Hotard said the project reinforces the company’s position in critical network infrastructure, stating it will “help strengthen the nation’s capacity to deliver greater security, productivity, and prosperity through AI-optimised connectivity at scale”.
Hotard added the expanded US footprint will support research shaping “the future of networking for the years to come”.
Nokia’s new strategy laid out fresh financial targets, leadership changes and a whittling down to two operating segments as it aims to cash in on the global AI boom.
Source: Mobile World Live
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