Report Highlights

The U.S. Role in the Global 5G RAN Supply Chain

The United States is a net importer of 5G radio access network hardware, with finished radio units, baseband units and small cells sourced mainly from Europe, South Korea and Asian contract manufacturers. Ericsson and Nokia, both headquartered in Europe, supply the majority of macro radio installations for AT&T and Verizon, while Samsung Networks is the principal Korean supplier. Domestic value concentrates in software, chipset design and systems integration rather than mass hardware assembly.

Mexico has emerged as the principal North American assembly node for radio hardware, giving U.S. operators tariff-compliant supply that avoids China-origin components. Vendor trade flows are shaped by FCC equipment authorization rules and by the Secure and Trusted Communications Networks Act of 2019, which bars federal subsidy recipients from using Huawei and ZTE equipment. The strategic vulnerability lies in RF chip design, where dependence on Asian foundries persists.

Growth Drivers for U.S. 5G RAN Deployment and Production

Mid-band spectrum auctions are the principal capacity driver. The FCC's 2021 C-band auction raised roughly $81 billion, and carriers including Verizon and AT&T are now deploying 3.7 GHz radios with massive MIMO arrays that must be manufactured in volume. This procurement wave converts spectrum rights directly into radio unit orders for Ericsson, Nokia and Samsung.

Open RAN funding is the second driver. The NTIA's Public Wireless Supply Chain Innovation Fund, authorized at $1.5 billion under the CHIPS and Science Act, is backing domestic radio and software vendors, which shifts production toward multi-vendor systems. Fixed wireless access and private 5G networks in manufacturing and ports add a third stream of small-cell and indoor radio demand.

Supply Chain Risks and Trade Barriers

Raw material exposure is the most acute risk for radio hardware. Gallium nitride power amplifiers depend on gallium supply, and China's export licensing on gallium and germanium, effective August 2023, exposes U.S. GaN production to abrupt volume shocks. Domestic GaN capacity remains small relative to the demand created by massive MIMO radios.

Trade barrier exposure is rising on several fronts. Section 301 duties on Chinese semiconductors were raised to 50% in 2025, increasing input costs for radio units assembled with Chinese-origin chips. The USMCA review scheduled for 2026 creates uncertainty over the Mexican assembly corridor that currently supplies much of the tariff-compliant volume.

Trade and Investment Opportunities in the U.S.

Import substitution in RF semiconductors offers the clearest commercial opening. MACOM's gallium nitride line in Lowell, Massachusetts, and Qorvo's Texas operations supply domestic amplifier capacity that operators and radio makers can contract directly. Investors backing GaN-on-silicon foundry expansion face demand from both macro and small-cell programs.

Inbound FDI for production capacity is concentrated in Texas, where Samsung's U.S. research operations in Richardson and Plano anchor a RAN engineering cluster near Dallas-Fort Worth logistics hubs. Radio assembly lines located near Dallas-Fort Worth, Houston and Memphis can serve both fixed wireless and private network demand while reducing tariff exposure on finished goods.

Regulatory and Trade Policy Environment for U.S. 5G RAN

The FCC's covered list, established under the Secure and Trusted Communications Networks Act, bars federal subsidy recipients from purchasing equipment from designated Chinese vendors. Equipment must also pass FCC authorization before sale, and Section 301 tariffs apply to Chinese-origin components entering radio production. The USMCA framework governs duty-free movement of Mexico-assembled radios, subject to its scheduled review.

Investment policy is governed by CFIUS review of foreign vendor acquisitions and by Team Telecom assessments for network security agreements. The Bureau of Industry and Security maintains export controls on advanced semiconductors, which affects radio chipsets destined for third countries. NTIA grant conditions tied to the Public Wireless Supply Chain Innovation Fund require domestic sourcing commitments from recipients.

U.S. 5G RAN Supply Chain Outlook to 2032

Radio assembly capacity will shift toward the U.S. and Mexico over the forecast period as Open RAN procurement and tariff exposure reshape vendor footprints. Samsung, Ericsson and Nokia will expand North American integration capacity, while domestic software vendors scale orchestration and radio intelligence platforms. Trade flows of finished hardware will decline relative to software and services.

Technology change will alter comparative advantage. Virtualized RAN running on commercial servers reduces the share of value held by proprietary baseband hardware, favoring U.S. software and cloud firms. AI-native baseband processing and early 6G research will reward vendors that combine chip design capability with domestic fabrication partnerships, positioning the U.S. as a design hub rather than an assembly base.

Market at a Glance

Leading Market Participants

• Ericsson
• Nokia
• Samsung Networks
• Mavenir
• JMA Wireless
• Dell Technologies
• Fujitsu
• NEC Corporation
• Parallel Wireless
• Amphenol