HMD Global Oy, the licensed maker of Nokia-branded smartphones, said on Saturday it is developing capabilities and processes to move production of 5G devices to Europe this year, Reuters and News.ro reported.

Europe does not have a large presence in smartphone manufacturing, as all the major companies, including Apple and Samsung, make their phones in Asia to keep costs down.

HMD, based in Finland, said in a press release that it is working with a number of IT security partners on software changes and thorough testing in the early stages of smartphone production and testing in Europe.

The company does not disclose where in Europe it plans to locate its plant.

The European Union has encouraged companies to set up manufacturing hubs in key sectors by introducing laws and offering subsidies, as the semiconductor bloc did with the European Chip Law.

“While we cannot discuss specific European subsidies, we are working with several parties, both public and private in Europe, to support European manufacturing, research and development,” Lars Silberbauer, HMD’s chief marketing officer, told Reuters.

In 2016, HMD signed an exclusive 10-year license agreement with Nokia Oyj, once the world’s largest phone maker, to manufacture Nokia-branded smartphones and tablets.

By then, Nokia had lost the smartphone war and sold its entire phone business to Microsoft in 2014.

Nokia is currently focusing on telecommunications network equipment.

HMD has used Nokia’s remaining phone patents and Taiwanese company Foxconn’s manufacturing facilities to create a new line of smartphones to compete with other budget Android phone makers.

On Saturday, the company also unveiled three smartphones — the Nokia G22, Nokia C32 and Nokia C22 — with three-day battery life and said it will begin repairing mobile phones in collaboration with repair firm iFixit.

(Article photo @ Wit Olszewski | Dreamstime.com)