Ericsson has announced an additional $50 million investment in its USA 5G Smart Factory in Lewisville, Texas, adding to an initial $100 million invested in 2020. This expansion aims to increase local production to meet the rising demand for US-made 5G infrastructure, aligning with the Build America Buy America Act (BABAA).
During a recent tour of the factory, which included customers, US government officials, media, and industry analysts, Ericsson highlighted the impact of this investment. The 300,000-square-foot facility, employing over 500 people, will enhance the production of existing and new radios and basebands, including Open RAN-ready products. The factory has been operational since 2020, supplying 5G network products to all major US communications service providers.
Yossi Cohen, President and Head of Ericsson North America, emphasized the strategic importance of the factory. “This 5G Smart Factory ensures we are working closely to secure fast and agile deliveries to meet US customer requirements. With this expansion, we can accelerate the production of Ericsson’s advanced Massive MIMO radios and our latest RAN Compute platform, all proudly made in the USA.”
The investment comes amid a highly politicized telecom environment, with the US banning Chinese vendors from network projects and pushing for increased domestic technological leadership and manufacturing. Asad Ramzanali from the White House Office of Science and Technology Policy praised the expansion, highlighting the Biden-Harris Administration’s commitment to enhancing US communications infrastructure, creating jobs, and ensuring secure networks.
Senator Ted Cruz also lauded the investment, noting the economic benefits for Texas and the Dallas-Fort Worth region. “Ericsson is proving once again that Texas is the best place in the country to do business,” Cruz said.
Despite the positive local impact, Ericsson faces broader challenges. The company announced job cuts in Sweden and anticipates a tough market for mobile networks in 2024. Nevertheless, the investment in the Texas facility is a strategic move to boost its presence and sales in the US telecom market.
