This commitment supplements Nokia's earlier $2.3 billion allocation for domestic manufacturing, R&D, and AI-related connectivity, achieved through its acquisition of Infinera Corporation earlier in 2025. Infinera had separately committed $456 million to establish two manufacturing facilities in the U.S., supported by incentives under the CHIPS Act.
Of the new investment, approximately $3.5 billion will target U.S.-based R&D efforts. These funds will drive progress in next-generation connectivity solutions across mobile, fixed, IP, optical, and data center domains, as well as applications for mission-critical and defense purposes. The remaining $500 million in capital expenditures will support manufacturing and development activities in states such as Texas, New Jersey, and Pennsylvania.
The plan underscores Nokia's dedication to fostering innovative technologies domestically, building on the legacy of its Nokia Bell Labs facility in New Jersey. For more than a century, engineers and scientists at Bell Labs have contributed foundational breakthroughs, including the transistor's invention, progress in digital transmission systems, and contemporary AI developments.
The expansion will bolster Nokia's portfolio of AI-enhanced networking products and its leadership in cutting-edge areas like network automation, quantum-secure communications, semiconductor fabrication, testing, packaging, and advanced materials science.
Howard Lutnick, Secretary of Commerce, said: “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.”
Justin Hotard, President and CEO of Nokia, stated: “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.”
Announced on November 21, 2025, from Nokia's headquarters in Dallas, Texas, the investment aligns with broader efforts to support domestic production of advanced networking components. By integrating Infinera's optical expertise, Nokia aims to create more efficient, secure, and scalable systems capable of handling surging data demands driven by AI applications.
This strategic move positions Nokia to contribute significantly to the evolution of resilient network architectures, ensuring reliable performance for enterprises, service providers, and public sector users. The company's U.S. operations, spanning multiple states, will facilitate job creation in high-tech sectors and promote collaboration with local innovation ecosystems.
Overall, the initiative reflects a sustained focus on technological leadership, leveraging historical strengths like Bell Labs to address emerging challenges in data-intensive environments. Through targeted R&D and production enhancements, Nokia seeks to enable faster deployment of AI-integrated solutions that enhance operational efficiency and connectivity nationwide.
