Ericsson and Nokia are still European at their core, but their strategies, factories, and even messaging are increasingly shaped in and for the United States. That shift is being driven by Washington’s push for secure, home‑grown infrastructure, new subsidy programs, and a tougher stance on Chinese tech, all of which give these two vendors strong incentives to deepen their American footprint.
Why US tech policy is reshaping European vendors
In recent years, US policy has combined three big forces: security worries about Chinese telecom gear, industrial subsidies tied to local production, and “Buy America” rules in infrastructure programs. Those moves leave the US without a large domestic telecom‑equipment champion and instead heavily reliant on a small group of foreign vendors, chiefly Ericsson, Nokia, and Samsung.
To win big federal‑linked contracts and BEAD‑ or CHIPS‑related funds, suppliers increasingly need US‑based manufacturing, US supply chains, and compliance with rules like Build America, Buy America (BABA). Ericsson and Nokia have responded by investing billions of dollars, branding their products as “Made in the USA,” and setting up dedicated units that speak directly to US policy priorities.
Ericsson’s expanding “Made in the USA” footprint
Ericsson has moved aggressively to present itself as an American manufacturing and innovation partner. Its 5G Smart Factory in Lewisville, Texas, opened in 2020 and now produces advanced radios and baseband (RAN compute) equipment for all major US carriers. The company recently announced an additional $50 million investment there, taking total spending well beyond its initial $100 million as it scales up production of Massive MIMO radios and Open‑RAN‑ready products.
Ericsson says the expanded 300,000‑square‑foot Texas facility employs more than 500 people and already delivers BABA‑compliant equipment tailored for BEAD‑funded rural broadband and 5G projects. Combined with six US R&D centers, thousands of American employees, and a new Federal Technologies Group dedicated to government and defense customers, the company is effectively building a US‑centric arm under its Swedish brand.
Nokia’s multi‑billion‑dollar US investment push
Nokia is following a similar path, though more heavily weighted toward AI‑driven networks and optical technologies. In late 2025, it announced plans to invest $4 billion over several years to expand its US manufacturing and R&D capabilities, on top of earlier US outlays and its acquisition of optical specialist Infinera. The funds are earmarked for AI‑ready mobile, fixed access, IP, optical, and data‑center networking, including advanced chip packaging and testing.
Alongside R&D, Nokia is building more hardware on US soil. It opened its first US broadband products factory in Kenosha County, Wisconsin, in 2024 and is adding capacity at sites in Texas, New Jersey, and Pennsylvania to produce network gear that can qualify for US subsidies and meet security expectations. Executives openly frame this “American build‑out” as a way to manage trade risk, tap CHIPS‑style incentives, and secure a long‑term role in US critical infrastructure.
How US policy is changing their business mix
US policy is not just pulling factories westward; it is also reshaping where Ericsson and Nokia earn their money and how they compete. Ericsson has secured a landmark multi‑year deal with AT&T to build an Open RAN‑based 5G network in the US, a contract valued at roughly $14 billion that will carry most of AT&T’s wireless traffic by 2026 and displace Nokia as a key supplier. Analysts say this win could push Ericsson’s North American RAN market share to well above 50 percent, with some estimates as high as 70 percent.
Nokia, by contrast, expects a revenue hit from AT&T’s shift but is leaning into US investments tied to AI networking, optical systems, and broadband manufacturing, partly supported by CHIPS incentives through Infinera. This realignment shows how both companies are adjusting product portfolios and customer strategies specifically to fit the US policy environment, from Open RAN requirements to security‑driven vendor diversification.
What “more American” actually looks like on the ground
The Americanization of Ericsson and Nokia is visible in where they build, what they build, and who they hire.
| Company | Key US investments and activities | Policy signals they are responding to |
|---|---|---|
| Ericsson | 5G Smart Factory in Texas; >$150M invested; >500 US manufacturing jobs; six R&D sites; dedicated Federal Technologies Group | BABA and BEAD rules, Open RAN pushes, national‑security preference for US‑made 5G gear |
| Nokia | $4B planned US R&D and manufacturing expansion; US broadband factory in Wisconsin; optical/AI networking tied to CHIPS incentives | CHIPS and Science Act, broadband subsidies, AI and data‑center industrial strategy |
Both firms now emphasize “Made in the USA” messaging in press releases and marketing, host US officials at their sites, and stress compliance with domestic sourcing rules—behaviors typical of homegrown suppliers courting federal and state projects.
What this means for US networks and competition
For US operators and policymakers, the Americanization of Ericsson and Nokia has two immediate effects. First, it provides a plausible answer to the question of how to build secure 5G, fiber, and AI‑ready networks without Chinese vendors: by deeply integrating foreign champions into the US industrial base through local factories, R&D, and supply chains.
Second, it creates a paradox on competition. With Huawei largely out and domestic equipment makers still limited, Ericsson’s strengthened position—especially after winning AT&T’s massive deal—risks making the US RAN market more concentrated, even as Open RAN and policy rhetoric aim to diversify vendors. Nokia’s fresh US spending may help preserve at least two strong non‑Chinese options, but the balance of power is tilting toward whichever company best aligns with Washington’s priorities at any given moment.
How these shifts could shape the future of US tech
Looking ahead, Ericsson and Nokia’s deeper American roots could influence everything from 6G standards to federal network procurement. With US‑based R&D in AI‑driven networking, optical chips, and quantum‑safe technologies, both companies are positioning their American labs as key engines of next‑generation innovation, not just regional sales offices.
For the US, this strategy offers a faster path to resilient, locally built infrastructure without waiting years for a brand‑new domestic champion to emerge. For Ericsson and Nokia, becoming “more American” may be the price of staying central to the world’s most influential telecom market—tying their fortunes more tightly than ever to shifting US tech and trade policy.
FAQs
Q1 Are Ericsson and Nokia moving their headquarters to the US?
No, both remain headquartered in Europe, but they are investing heavily in US factories and R&D centers to align with American policy and security demands.
Q2 Why is the US encouraging more local production from these companies?
Washington wants secure, reliable telecom and AI infrastructure without relying on Chinese vendors, so it uses subsidies and sourcing rules to pull manufacturing and technology development inside the US.
Q3 How could these changes affect US consumers?
Stronger US production and closer ties to American carriers could improve network resilience and speed, though the impact on prices will depend on how competitive the vendor landscape remains.
