Nokia policy chief on CHIPS Act uncertainty, BEAD shake-up & spectrum stalemate

With President Trump moving to dismantle the Biden-era CHIPS Act, originally introduced to bolster US semiconductor production, Hendricks emphasised the strategic importance of continuing semiconductor investment from both a national security and economic perspective.

“The US has always had a very strong position in semiconductor research but lacked broader ecosystem development,” Hendricks explained. “A concerted effort was made to not only bolster wafer and foundry capabilities but also to strengthen the entire semiconductor ecosystem.”

For Nokia, whose Bell Labs facility is poised to expand significantly in New Jersey, the CHIPS Act represented a valuable opportunity, especially around chip design and advanced silicon photonics.

Infinera, which Nokia completed its $2.3 billion acquisition of in March, were also set to benefit through a $93 million investment to support the construction of a new fab in San Jose, California.

It was one of the deals that was rushed through to finalisation by Biden administration officials in the days leading up to Trump taking office, over fear he would quash the federal program in his first few days.

Hendricks highlighted concerns about the sudden shift in policy, stating, “If we see a wholesale cancellation or repurposing of funds, it’s difficult to see how that advances US national security.”

There’s been some rumbling that the CHIPS Act might get reworked, similar to the GOP’s plans for BEAD. But such a rework might not appear likely, with Hendricks noting that “a good number” of CHIPS Office staff who were responsible were let go.

He also highlighted the contradiction between tariff-driven reshoring incentives and the practical difficulties this policy creates, especially when importing essential manufacturing components.

“One of the justifications for tariffs is to encourage the reshoring of manufacturing, which Nokia believes the US is an exceptional place. We've already relocated manufacturing for the BEAD programme.

“We're constantly looking at ways to make new investment, but at least until we're able to establish industrial base in the US for things like printed circuit boards, you're going to be importing the components to do the manufacturing from places that you're hitting with tariffs, and you're making it prohibitively expensive to reshore manufacturing. So it's a little hard to figure out which direction we're going here.”

Upon discussing the Broadband Equity, Access, and Deployment (BEAD) programme, Hendricks expressed cautious optimism about recent administrative reviews.

Commerce Secretary Howard Lutnick recently kicked off a review of BEAD in a bid to ensure that the project provides value for money and that Congress “gets the benefit of the bargain”.

Hendricks emphasised Nokia’s technology-agnostic approach, advocating for a sensible blend of fibre and satellite solutions to efficiently address US connectivity gaps.

“All the technologies, terrestrial mobile, fixed wireless, fibre, will be necessary,” he said, emphasising fibre's cost-effectiveness over the long-term lifecycle. “Fibre’s upfront costs are transparent and long-term ownership costs are well-documented, whereas satellite’s long-term economics remain uncertain."

However, Hendricks did welcome administrative reviews aimed at streamlining BEAD, noting Nokia’s substantial investments into domestic manufacturing facilities like its Kenosha plant, which is still awaiting sufficient orders.

“We were clear in our frustration with the Biden administration that [BEAD] wasn't moving quickly enough. We told that to the secretary multiple times.

“That said, to the extent that a rapid review and revision of some of the policies can then unleash the orders and the funding, that'd be great.”

On spectrum policy, Hendricks supported FCC Chair Brendan Carr’s proactive stance on opening more mid-band spectrum, particularly in the critical 3 GHz to 12 GHz ranges.

The policy chief criticised historical inaction that has hindered efficient deployment and innovation.

“The problem with spectrum isn’t technical; it's the entrenched positions preventing pragmatic solutions,” Hendricks stated, stressing the urgency of creating a robust spectrum pipeline.

Without such foresight, he said the US “risks repeating past mistakes, deploying networks on available but suboptimal frequencies and facing exorbitant spectrum prices”.

The FCC plans to open up additional portions of C-band spectrum, ranging from 3.98 to 4.2 GHz, for more intensive applications.

The agency also wants to expand millimetre wave (mmWave) spectrum usage, with officials voting in favour of new sharing rules for the lower 37 GHz band.

The FCC also wants to boost the connectivity of satellites, with plans to overhaul power limits on non-geostationary satellites (NGSOs), like those used by SpaceX and Amazon.

The Nokia policy chief advocated for dedicated spectrum allocations to boost enterprise wireless innovation, crucial for applications from precision agriculture to healthcare.

Looking ahead, Hendricks underscored the importance of continued federal support for foundational R&D through programmes such as the Science Act component of the CHIPS Act, which remains underfunded.

“Investing in foundational R&D—quantum computing, AI, and advanced electronics—is essential,” he emphasised, highlighting Bell Labs’ role as a cornerstone of innovation.

Hendricks also called for a rational, cross-sectoral dialogue to strategically bolster critical US manufacturing capabilities, such as printed circuit boards and RF filters, to reduce dependency on geopolitically vulnerable regions.

“The US remains a prime location for manufacturing and R&D,” Hendricks concluded, “but it requires clear, strategic policies and consistent government-industry collaboration to realise its full potential.”

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