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Home » Nokia warns US tech edge at risk amid CHIPS and spectrum shifts
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IT Infrastructure

Nokia warns US tech edge at risk amid CHIPS and spectrum shifts

By Yara YangMay 7, 2025No Comments3 Mins Read
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  • Hendricks stresses risk to national security and manufacturing goals if CHIPS Act funding is cancelled
  • Nokia urges pragmatic approach to broadband and spectrum policies to sustain US tech leadership

What happened: Nokia warns US policy shifts threaten tech edge

Brian Hendricks, vice-president of policy and public affairs for Nokia Americas, has warned about abrupt US policy shifts. These shifts, involving the CHIPS Act, the BEAD programme and spectrum allocation, could jeopardise US tech and economic competitiveness. Speaking ahead of the International Telecoms Week (ITW), Hendricks outlined rising uncertainty over funding and regulation. He said this is undermining industry confidence and future investment.

The CHIPS Act was designed to boost US semiconductor production but now faces rollback efforts. These are driven by President Trump’s administration. Hendricks expressed concern that dismantling or repurposing funds could hurt national security and stifle innovation. Nokia had planned major investments under the scheme, via Bell Labs and its recent Infinera acquisition. “If we see a wholesale cancellation or repurposing of funds,” he said, “it’s difficult to see how that advances US national security.”

Hendricks also discussed the BEAD programme and welcomed its ongoing review by Secretary Howard Lutnick. This aims to ensure broadband funding is used efficiently. He supported a balanced approach combining fibre and satellite technologies to close connectivity gaps. He also stressed the need for swift policy changes to unlock stalled orders. These affect domestic manufacturing sites such as Nokia’s Kenosha plant.

Also read: Nokia and Bittium test hybrid network for Finnish military
Also read: Nokia completes $2.3B Infinera deal to power AI networks

Why it is important

Hendricks argued that inconsistent industrial policy blocks efforts to reshore advanced manufacturing. He warned that tariff-driven strategies will backfire without a strong US supply chain. For example, without local production of key components like printed circuit boards, reshoring becomes economically unviable under current import tariffs.

On spectrum allocation, Hendricks backed FCC initiatives to open more mid-band and millimetre wave spectrum. These bands are vital for next-generation networks and enterprise applications. However, he criticised past policy inertia and cautioned that a weak spectrum pipeline will cause costly inefficiencies. He also warned the US could fall behind competitors.

Looking ahead, Hendricks stressed the need for steady federal support for foundational R&D. In particular, he highlighted quantum computing, AI and advanced electronics as crucial for long-term tech leadership. Furthermore, he called for cross-sector collaboration and clear policies to unlock the full potential of US manufacturing and innovation.

broadband policy spectrum allocation
Yara Yang

Yara Yang is a community engagement specialist of BTW Media and studied education at the University of York in the UK. Contact her at y.yang@btw.media.

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