FILE PHOTO: Finnish technology and telecommunication company Nokia's headquarters in Espoo, Finland, October 28, 2025. Lehtikuva/Seppo Samuli via REUTERS

By Gianluca Lo Nostro

(Reuters) -Finland's Nokia said on Friday it plans to invest $4 billion in the United States, targeting research, development, and production to drive advancements in artificial intelligence-driven network connectivity.

The telecom equipment maker said that $3.5 billion of the investment will be allocated to R&D efforts. It added $500 million will be spent on manufacturing and capital expenditures in states including Texas, New Jersey, and Pennsylvania.

Nokia, which operates over a dozen sites in North America and owns Bell Labs in New Jersey, introduced a new strategy on Wednesday aimed at streamlining operations with an emphasis on AI.

Finnish President Alexander Stubb said earlier in October Nokia was one of the topics discussed with U.S. President Donald Trump at a White House meeting.

Friday's announcement follows a profit warning in July tied to tariffs and a weakening dollar, as some non-US firms shift production there to mitigate trade risks.

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.

(Reporting by Anna Ringstrom and Gianluca Lo Nostro, editing by Terje Solsvik and Matt Scuffham)