Ericsson announced plans to build its first fully-automated smart factory in the US. The factory will produce Advanced Antenna System radios to boost mobile network capacity and coverage, including rural coverage, as well as 5G radios for urban areas. The company underlined that both product lines will be necessary for rapid 5G deployments in North America.
The decision is the latest step in Ericsson's efforts to take a large share of 5G network spending in the US by expanding its operations there. It also dovetails with the current US government putting a greater focus on local manufacturing to support jobs and ensure national security in the tech industry.
Ericsson said it's working to ensure its global supply chain is close to customers throughout its European, Asian and American operations, to provide fast and agile deliveries to meet customer requirements. The company said it is also fast-tracking the launch of the next-generation smart manufacturing through a modular and flexible production setup in its existing factories in Estonia, China and Brazil.
The location of the US factory will be announced after concluding discussions with state and local authorities, and Ericsson wants the site operational in early 2020. The smart factory will be powered by Ericsson 5G products tailored for the industrial environment and will also seek LEED Gold Certification.
The 5G equipment will support automated warehouses, connected logistics and automated assembly, packing and product handling, and the use of autonomous carts. To ensure the high quality of products, Ericsson runs its new product introduction and early production in-house. Over time, activities to support new product introduction will also be added to the new factory operations as local competence and knowledge of 5G is built.
Ericsson plans to initially employ approximately 100 people at the facility.
Ericsson began operations via a production partner for the first radios for the US market produced at the end of 2018. The company also established a new R&D site, a software development centre, in Austin, Texas. It is located close to the Austin ASIC Design Center, which opened in late 2017 and focuses on core microelectronics of 5G radio base stations.
