Nokia has disclosed plans to invest $4bn in US research, development and manufacturing operations, focusing on building AI-ready connectivity infrastructure across mobile, fixed access, IP, optical and data centre networking.
The Finnish company’s investment is part of a multi-year expansion and follows its $2.3bn acquisition of US optical semiconductor company Infinera, which was completed in February 2025.
Nokia stated that $3.5bn will be directed towards research and development (R&D) activities. This investment is expected to drive advances in network technology spanning data centres, mission-critical systems, defence solutions, and the integration of AI across all network layers.
The capital expenditure includes $500m allocated to manufacturing and R&D in Texas, New Jersey, and Pennsylvania.
According to Nokia, this funding will bolster domestic production capabilities for mobile, fixed access, IP and optical networking equipment, as well as enhance its AI-optimised networking suite.
The scope covers further work on automation, quantum-safe networks, semiconductor production and packaging processes and research into advanced material sciences.
This builds on prior investments from both Nokia and Infinera. Before becoming part of Nokia, Infinera had announced a $456m investment in two US manufacturing facilities backed by federal CHIPS Act incentives.
Nokia president and CEO Justin Hotard said: “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-optimised connectivity at scale, while advancing the newest research and innovation that will shape the future of networking for the years to come.”
Nokia’s longstanding presence in US-based innovation also continues through Bell Labs in New Jersey, which has contributed to developments from the transistor to digital communications and most recently AI technologies.
The announcement comes alongside corporate restructuring and strategy updates outlined at the recently held Capital Markets Day 2025.
The company is simplifying its operational model into two segments, which are Network Infrastructure and Mobile Infrastructure.
It is targeting annual comparable operating profits between €2.7bn ($3.1bn) and €3.2bn ($3.7bn) by 2028 and pursuing five priorities. These include accelerating progress in AI and cloud technologies, advancing mobile connectivity including work on 6G, co-innovating with customers and partners, focusing investment where it can differentiate, and seeking sustainable returns.
