Finland’s Nokia announced on Friday a $4 billion investment in the United States, aimed at boosting research, development, and manufacturing to advance AI-powered network connectivity.
The telecommunications equipment manufacturer announced that $3.5 billion of the investment will be dedicated to research and development. Additionally, $500 million will be allocated to manufacturing and capital expenditures in states such as Texas, New Jersey, and Pennsylvania.
The announcement on Friday comes after a profit warning in July, which was linked to tariffs and a declining dollar, as certain non-US companies move production to the US to reduce trade risks.
Nokia, which has more than twelve locations in North America and owns Bell Labs in New Jersey, unveiled a new strategy on Wednesday focused on optimizing operations with a focus on AI. Finnish President Alexander Stubb mentioned earlier in October that Nokia was among the subjects discussed with U.S. President Donald Trump during a meeting at the White House.
The U.S. lacks a major domestic maker of telecom equipment, leaving Nokia, Ericsson and Samsung as the main options. Chief executive Justin Hotard, who joined Nokia from Intel earlier this year, told Reuters on Wednesday that Nokia's focus for networks is on countries that value Western technology.
