Ericsson has shifted millimeter wave radio production from Texas to Estonia. The move affects equipment once made at its smart factory in Lewisville.
The company opened that site in 2020 for US-focused 5G production. Its first products included mmWave radios for American operators. Verizon received the first 5G base station from the plant.
Now, the production change suggests a different market reality. US demand for mmWave equipment appears smaller than early expectations. Ericsson says the decision reflects manufacturing efficiency, not product withdrawal.
Ericsson said the move was based on customer needs and operational efficiency. It also said mmWave remains part of its portfolio. The company continues to support customers using the technology.
This decision gives Ericsson a leaner manufacturing setup. Estonia may serve current demand more efficiently. Smaller production volumes can favor consolidation over duplicated capacity.
However, the change raises questions for US telecom manufacturing. Ericsson invested $150 million in the Lewisville facility. The plant employs around 500 people and remains important to its US strategy.
The move also carries tariff considerations. Shipping equipment from Europe to the US can add costs. Ericsson likely believes lower shipment volumes make that manageable.
More broadly, the decision reflects a cooling around mmWave. During early 5G launches, many expected high-band spectrum to transform mobile broadband. In practice, operators found it best suited for dense locations.
That does not mean mmWave has lost value. It offers large capacity in small areas. Stadiums, transport hubs, and busy city zones still benefit from it.
Verizon remains the clearest US supporter of mmWave. Yet it shifted wider 5G deployments toward C-band spectrum. C-band offers broader coverage and strong speeds with fewer site demands.
Even so, Verizon now sees a second use case. The carrier is testing mmWave for fixed wireless access, or FWA. This service delivers home broadband over mobile network equipment.
At a recent investor call, Verizon discussed a breakthrough for faster broadband reach. The company believes mmWave can support gigabit speeds for more homes.
At the Brooklyn AI-Native 6G Summit, Verizon CTO Yago Tenorio explained its future role.
“The experience our customers have in a stadium is linked to the availability and how you manage your mmWave spectrum more than it is related to anything else … Apart from that, and my boss was very clear at the earnings call last week, we believe that we found a second life for mmWave to fuel our FWA ambitions.”
A Verizon spokesperson also confirmed ongoing interest in the band.
“We are continuing to explore new ways to extend the reach and utility of our millimeter wave deployment – particularly for high-density environments like multi-dwelling units (MDUs). mmWave remains an active, business-as-usual asset for our mobile network, and expanding its role into targeted broadband solutions is a natural progression.”
For telecom engineers, the message is clear. mmWave is no longer the centerpiece of nationwide 5G. Yet it remains useful where capacity matters most.
Ericsson’s Estonia move looks practical rather than dramatic. Still, it signals a maturing 5G market. Vendors and operators now optimize around real demand, not early launch enthusiasm.
