Finnish IT firm Nokia has said that it plans to invest €360 million in Germany.

The money will go to developing software, hardware and chip design at its sites in Ulm and Nuremberg.

The company said that it 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.

This ongoing 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, the company said.

Other areas of focus include energy efficiency, with the company working to support European climate targets under the Green Deal.

Nokia said that it expects the project 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 digitalisation.”

Tommi Uitto, president of Mobile Networks at Nokia, said: “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.

Uitto described Germany as “an important market for Nokia”, and said that the company looks forward to working with the government “to produce cutting-edge technology that is ‘Made in Germany’.”

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