Jon Skillings/CNET

Ericsson said Wednesday that it plans to open a factory next year in the US to build 5G gear as the next-generation wireless technology moves toward the mainstream.

The factory will produce 5G radios, the element in phones and other devices that sends and receives the 5G signal, for use in urban areas. It also will make Advanced Antenna System radios that it said are components for large-scale deployments of 4G and 5G networks.

5G, the next generation of cellular technology, offers faster speeds and lower latency between devices. Carriers like Verizon and AT&T in the US, Telstra in Australia and EE in Britain are just now starting to establish 5G mobile networks in a handful of big cities.

Now playing: Watch this: AT&T 5G network has some of the fastest speeds we've...

Ericsson pledged last year to invest in the "accelerated build out of 5G" in the United States. Washington has banned Huawei, one of the major makers of 5G gear, from the US market, creating opportunity for other suppliers.

Federal Communications Commission Chairman Ajit Pai applauded Ericsson's announcement.

"Building 5G equipment in the United States is good for our economy, good for the supply chain, and good for the rapid rollout of the next generation of wireless connectivity in the United States," he said.

Ericsson didn't give a location for the factory but said it would employ about 100 people. The factory itself will make use of 5G technology for fast, responsive networking that will aid in automation in its warehouses and on its assembly line.

The company didn't immediately respond to a request for further comment.

Earlier this year, CNET got an early look at some tiny 5G antennas that Ericsson was experimenting with.