Nokia, the electronics maker, made an announcement on November 21, 2025, that it has gone ahead and committed to spending $4 billion in order to expand its manufacturing as well as research and development capabilities in the U.S.
As Nokia commits $4 billion, these funds are going to help the Finnish company to speed up innovation in artificial intelligence-ready tech in mobile, internet protocol, fixed access, optical, and data center networking, as per the press release.
The investment is also anticipated to help strengthen the AI-optimized networking products of Nokia and R&D in advanced networking technologies like automation, semiconductor manufacturing, quantum-safe testing, and packaging, as well as material sciences.
Nokia said that it anticipates spending almost $3.5 billion on R&D so as to progress new technologies when it comes to connectivity and AI by way of all aspects of its telecommunications infrastructure, like mobile, data center as well as defense solutions.
The remaining $500 million is going to be invested in domestic manufacturing as well as R&D throughout Texas, New Jersey as well as Pennsylvania.
Nokia also went on to establish its very first U.S. broadband products factory in Wisconsin’s Kenosha County, which started its production in April 2024.
The news of Nokia commits $4 billion, is a part of the strategy by Nokia in order to address increasing AI demand, which it went on to announce at its Capital Markets Day on November 19. The plan is going to focus on pacing up the growth in AI along with cloud computing, mobile connectivity having AI-built networks as well as 6G, development with customers and stakeholders, investing money where it can deliver technologies at scale, and also unleashing sustainable returns, said Nokia’s president and CEO, Justin Hotard, at the investor event.
This also goes on to include partnering with major companies within the industry to accelerate time to value, added Hotard.
The company has already started implementing a part of its strategy. In October 2025, Nokia and Nvidia partnered, wherein the latter’s AI-powered products are going to be added to the former’s radio access network bundle. The deal is going to launch AI-capable, 5G-advanced, as well as 6G networks on Nvidia’s platforms in order to support telecommunications for its consumer as well as business services. Nvidia is also looking to invest $1 billion in Nokia.
Moreover, Nokia is going to reorganize its business as per another November 19 release. The idea is to run two operating segments so as to better align with the needs of its customers and speed up innovation in order to address the growing demand for AI, which is network infrastructure and mobile infrastructure. This change is going to take effect in January 2026.
Moreover, the company is also going to move four segments into a business portfolio as it goes on to assess the next steps for each in 2026. Nokia also looks forward to establishing its defense segment as an incubation unit, hence serving as the central product launch as well as the R&D hub related to the defense portfolio.
According to Hotard, being the trusted western provider of secure as well as advanced connectivity, their technology is powering the AI supercycle. Right from fixed to mobile infrastructure, they are developing technology that accelerates the value for our customers.
It is well to be noted that this investment adds to the $2.3 billion that Nokia spent in order to acquire Infinera – chip maker. This deal was completed in February 2025, hence helping the company to build on its commitment to U.S.-based manufacturing, advanced testing, and packaging capabilities, as per the June 2024 press release.
Apparently, the Infinera acquisition came with the chipmaker’s past announced $456 million investment for a couple of manufacturing facilities in the U.S., which includes a semiconductor fab in San Jose, California, as well as an advanced test along with a packaging facility located in Pennsylvania’s Bethlehem.
Notably, Infinera got almost $93 million through the CHIPS and Science Act in 2024.