Nokia expects to allocate $3.5 billion to U.S.-based R&D, covering next-generation connectivity technologies
In sum – what to know
$4B to expand U.S. operations – The plan adds major R&D and manufacturing investments on top of earlier spending linked to the Infinera acquisition.
Advanced networking R&D – Funding targets mobile, fixed, optical, IP, data center, and defense-related technologies, alongside work in semiconductor design and testing.
Manufacturing capacity and CHIPS-related activity grow – About $500M will support facilities in Texas, New Jersey, and Pennsylvania, building on prior CHIPS-aligned projects.
Nokia has announced plans to expand its U.S. R&D and manufacturing footprint with a $4 billion multiyear investment focused on AI-ready mobile, fixed access, IP, optical, and data center networking technologies.
The initiative, developed in coordination with the U.S administration, adds to the company’s $2.3 billion investment tied to its acquisition of Infinera earlier this year. Infinera had separately committed $456 million for two U.S. manufacturing sites that received CHIPS Act incentives.
Of the new investment, Nokia expects to allocate roughly $3.5 billion to U.S.-based R&D, covering next-generation connectivity technologies across mobile networks, fixed access, optical systems, IP routing, data center networking, and mission-critical and defense applications. The Nordic vendor said this effort will build on the long-standing research work of Nokia Bell Labs in New Jersey.
The remaining $500 million will go toward capital expenditures for manufacturing and R&D activities in states including Texas, New Jersey, and Pennsylvania. Nokia noted that the expanded investment will support work in automation, quantum-safe networking, semiconductor manufacturing and testing, advanced materials, and other areas linked to AI-focused network development.
Secretary of Commerce Howard Lutnick, said: “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.”
“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,” said Nokia president and CEO, Justin Hotard.
Nokia has recently unveiled a new strategy focused on artificial intelligence, as the vendor said it aims to simplify its business and boost annual core profit by as much as 60% over the next three years.
Beginning in 2026, the Finnish company intends to reorganize into two primary businesses: network infrastructure, dedicated to AI and data centers, and mobile infrastructure, focused on core telecoms activities. Nokia said that network infrastructure consists of three business units: optical networks, IP networks, and fixed networks.
Meanwhile, the new mobile infrastructure segment will bring together Nokia’s core networks portfolio, radio networks portfolio and technology standards, formerly Nokia Technologies.
