Nokia announced plans to significantly expand its U.S. research and development and manufacturing footprint, committing $4 billion over the next 5 years. The expansion aims to accelerate innovation in mobile, fixed access, IP, optical, and data center networking technologies designed for an AI-driven era. This new commitment builds on Nokia’s earlier $2.3 billion investment in U.S. semiconductor manufacturing, R&D, and AI capabilities following its acquisition of Infinera Corporation. In addition, Infinera had previously committed $456 million for two U.S. manufacturing facilities supported by CHIPS Act incentives.
Nokia expects to allocate about $3.5 billion of the plan toward U.S. research and development efforts. These investments are intended to advance next-generation connectivity and AI technologies across the network stack, including mobile systems, fixed access, IP routing, optical networking, data center connectivity, and mission-critical and defense solutions. The company said that the investment aligns with its longstanding history of innovation in the U.S., reinforced by the legacy of Nokia Bell Labs in New Jersey, where scientists and engineers have produced breakthrough technologies ranging from the transistor to modern digital communications and emerging AI capabilities.
The remaining $500 million will be directed toward capital expenditures for U.S. manufacturing and additional R&D initiatives, with investments concentrated in states such as Texas, New Jersey, and Pennsylvania. Nokia said the expanded investment will strengthen its portfolio of AI-optimized networking solutions and deepen its research in areas that include automation, quantum-safe networks, semiconductor manufacturing, materials science, and advanced packaging technologies.
The announcement reflects Nokia’s intention to support domestic production across mobile, fixed access, IP, optical, and defense networking products at a time when the U.S. and its allies continue to prioritize AI innovation, network resilience, and secure supply chains.
KEY QUOTES:
“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 U.S.A.”
Howard Lutnick, Secretary of Commerce
“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.”
Justin Hotard, President and CEO, Nokia
