Nokia announces $30M semiconductor investment in Pennsylvania

Nokia has announced a major expansion of its advanced test and packaging (ATP) operations in Allentown, Pennsylvania. The USD 30 million investment will increase domestic production capacity of the optical networking technologies that power scalable AI infrastructure connectivity across the United States. 

The expansion is expected to nearly double Nokia’s Pennsylvania workforce to more than 500 jobs in engineering, manufacturing, and R&D, while generating a projected economic impact of more than USD 500M over the next five years, the company said.

Through investment in new manufacturing equipment and an expanded manufacturing footprint, Nokia is increasing the site’s production capacity by up to 10 times its current level, with new capacity expected to be commercially available by the end of the third quarter.

“The AI supercycle is fundamentally reshaping network and infrastructure requirements in the US and globally. Our expansion in Allentown is a direct investment in that future—scaling domestic manufacturing of the optical networking technologies that power AI infrastructure,” said Justin Hotard, President and CEO of Nokia. “It also reflects the strong partnership between Nokia, the United States, and the Commonwealth of Pennsylvania to support advanced manufacturing, create jobs, and strengthen US technology leadership and global competitiveness.” 

The investment includes approximately USD 30 million from Nokia, which includes bipartisan support of approximately USD 4 million in assistance from the state of Pennsylvania and approximately USD 10 million in federal CHIPS investment tax credit. This expansion is part of Nokia’s multi-year plan to invest USD 4 billion in R&D and manufacturing in the US for AI-ready network connectivity.