Ericsson opened its 5G smart factory in Lewisville, Texas, in 2020 to make products for US customers. The first products to roll off the line were millimeter wave (mmWave) radios. Verizon was the first carrier to receive a 5G basestation made at the plant – a mmWave “street macro” solution. Six years later, things have changed. Light Reading has learned that Ericsson has stopped manufacturing mmWave radios at the Lewisville facility and moved production to its site in Estonia.
Ericsson sent the following statement:
“Ericsson continuously adapts its global manufacturing footprint based on customer requirements, demand and operational efficiency. Production of the mmWave radio products previously manufactured at our factory in Lewisville, Texas, was consolidated at our manufacturing site in Estonia. This was a production-footprint decision and does not represent a discontinuation of Ericsson’s mmWave portfolio. Ericsson continues to support its customers with mmWave solutions. We do not disclose product-specific production volumes, customer demand levels or individual delivery arrangements. Ericsson has a globally diversified and flexible supply chain, with manufacturing capabilities across several regions. We continuously assess trade, tariff developments, and take appropriate measures to manage potential impacts while maintaining continuity for our customers.”
The implication is that there is not as much demand for Ericsson’s mmWave radios from US carriers. Shipping products from Europe to the US would presumably incur tariff costs. The decision suggests Ericsson has calculated that the shipments would be small enough to justify the cost, and it would be more cost effective to manufacture outside the US.
The move also reflects a cooling on mmWave in the US since the early rollout of 5G, when the highband spectrum was expected to play a bigger role in delivering mobile broadband services.
Verizon revisits mmWave
Ericsson is a key radio access network (RAN) supplier to the three US carriers, AT&T, Verizon and T-Mobile. Verizon was most keen on using mmWave spectrum for 5G, but it has shifted its wider macro deployments to C-band midband spectrum.
Now Verizon is reevaluating the use of mmWave for fixed wireless access (FWA). During the carrier’s latest investor call, CEO Dan Schulman flagged a “technological breakthrough” using frequencies that could extend the availability of 1Gbit/s broadband to 10 to 15 million more premises.
Changes are clearly afoot. Light Reading reported that UK mmWave supplier CBNG went out of business after its main customer Verizon decided not to use its 39GHz radio product for 5G FWA.
Speaking at the Brooklyn AI-Native 6G Summit this week, Verizon CTO Yago Tenorio said mmWave will have the same role in 6G as it does in 5G – that is, providing capacity in hotspots, such as stadiums.
“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.”
He also said the carrier has tested mmWave for sensing and drone detection in separate trials with Nokia and Qualcomm.
A Verizon spokesperson said in an emailed response: “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.”
Making 5G in America
Ericsson invested $150 million in the Lewisville factory and employs about 500 people there.
Ericsson, and its Nordic rival Nokia, have both increased investment in US manufacturing and R&D as the first and second Trump administrations ramped pressure on industries to make their products in the country. The imposition of tariffs last year made local manufacturing more of a business imperative.
Light Reading visited the smart factory in May 2024. See the video below: