Nokia to invest €360m in German chip design operations

Telecommunications giant Nokia has planned to invest €360 million in software, hardware and chip design at its Ulm and Nuremberg sites in Germany, said Nokia in a press release on Wednesday.

Nokia is conducting a four-year European IPCEI (Important Projects of Common European Interest) project, which is being funded by Nokia and the German Federal Ministry of Economics and Climate Protection (BMWK) and the German states of Baden-Württemberg and Bavaria.

The project will focus on the integrated development of software, hardware and high-performance systems-on-chips based on a digital twin.

These will be used in radio and optical products in future mobile communications systems based on the 5G-Advanced and 6G standards.

Nokia is further expanding its extensive experience in chip design and strengthening the European value chain. Another focus area is on the energy efficiency of the systems to support European climate targets under the Green Deal.

Nokia is closely cooperating with research institutes and universities to achieve this. This cooperation will be strengthened by the long-term IPCEI investment and funding.

An important milestone not only for Nokia but also for the future of the telecommunications industry in Germany and Europe, the project is expected to strengthen Europe's competitiveness and innovative power, especially in the field of microelectronics for future technologies such as 6G and artificial intelligence (AI), enable complex applications for the metaverse, for example, and advance digitalization.

The microelectronics systems developed as part of the project will help to make networks more energy-efficient and more powerful at the same time.

“This important funding will support our efforts to advance the telecommunications industry in Germany and in Europe, helping to drive innovation and strengthen competitiveness. In particular, it will help our research into microelectronics that will power future technologies such as 6G, artificial intelligence and the metaverse as well as develop networks that are more energy-efficient and powerful. Germany is an important market for Nokia, and we look forward to working with the government to produce cutting-edge technology that is ‘Made in Germany,” said Tommi Uitto, President of Mobile Networks of Nokia.