Ericsson chooses Austin as site of new design center for city’s “bustling tech and start up scene”

When deciding where to open its next 5G design center, the Swedish telecommunications juggernaut Ericsson knew that Austin was the right choice.

With its highly skilled talent and growing reputation as a leader in the start-up tech industry, Austin has attracted many processor manufacturing companies and now Ericsson is joining the neighborhood. Many of Ericsson’s partners and suppliers are also based to Austin, making the city an obvious choice instead of California’s Silicon Valley. In an interview with Fierce Wireless, Sinisa Krajnovic, Head of Development Unit Networks at Ericsson, said, “We did analysis across the whole world. We had considered several places seriously and our choice was Austin for this.” Similarly, “Austin is one of the fastest-growing cities in the US with a bustling tech and start-up scene,” Niklas Heuveldop, Head of Ericsson North America, told Business Insider. “We want to capture the great talent on-hand there, enabling us to increase digital ASIC capabilities even further and be close to some of our key global customers.”

Ericsson’s new design center in Austin will focus on testing and developing the Application Specific Integrated Circuit (ASIC), a microelectronics processor. Intended for cell phones and mobile devices, these are 100 times faster and more cost and power efficient than the average personal computer processor. Located in Austin’s tech neighborhood, the new design center will collaborate with nearby silicon manufacturing plants to design solutions and prepare for the commercialization of the 5G network.  Joining the company’s teams in Sweden and China, the Austin design center is part of Ericsson’s global strategy to develop “faster, better, and greener 5G products to bring into the Ericsson portfolio by 2019,” said Krajnovic. The 5G design center in Austin is expected to be up and running by the end of this year. It is currently recruiting designers and developers.

Ericsson’s expenses from R&D experiments conducted in Austin are eligible for the R&D Tax Credit and the company could receive up to 14% in return. If you are also conducting R&D testing to develop and manufacture processors, you could be eligible for the R&D Tax Credit. Contact a Swanson Reed R&D Specialist today.

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s.  For more information please visit us at or contact your usual Swanson Reed representative.



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