Nokia Shuts Hangzhou Site, Bets $4 Billion on US AI

Nokia is reshaping its global footprint as geopolitical tensions and supply-chain fragmentation alter the telecom-equipment market. China was once a major research and manufacturing base for the Finnish company, but stronger domestic competitors and declining opportunities for foreign vendors have reduced its strategic value. The United States, by contrast, offers growing demand for optical networking and other infrastructure needed to connect artificial-intelligence data centers and cloud platforms.

Nokia has moved to close its research and development center in Hangzhou and substantially scale back its China operations. At the same time, it plans to commit $4 billion in the United States, using acquisitions to add semiconductor-manufacturing capabilities and expanding optical-network research and production. The shift is aimed at capturing surging AI and cloud-infrastructure spending, though the supplied report did not specify an announcement date or a detailed timetable for completing the investment.