Nokia to Expand Advanced Test and Packaging in Allentown
24th article in the last 90 days, one of 232 articles referencing Nokia. Previous coverage: Dell’Oro Group forecasts IPoDWDM market growth at 27% CAGR (Jun 2026).
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Nokia said it will expand its advanced test and packaging operations in Allentown, Pennsylvania, adding manufacturing capacity for photonic chips used in optical modules.
The company described the expansion as part of a multi-year effort tied to AI-ready network connectivity, with plans to increase domestic production capacity of optical networking technologies. It said the expansion is expected to nearly double its Pennsylvania workforce to more than 500 jobs and to generate projected economic impact of more than $500M over the next five years.
Nokia said less than two percent of global semiconductor advanced test and packaging takes place in the U.S., and that its Allentown facility is one of only a few in the country providing advanced test and packaging of photonic chips into optical modules for use in telecom infrastructure and AI. It said new manufacturing equipment and an expanded manufacturing footprint increase 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 investment includes approximately $30 million from Nokia, plus approximately $4 million in assistance from the state of Pennsylvania and approximately $10 million in federal CHIPS investment tax credit. Justin Hotard, President and CEO of Nokia, said, “The AI supercycle is fundamentally reshaping network and infrastructure requirements in the U.S. 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. It also reflects the strong partnership between Nokia, the United States, and the Commonwealth of Pennsylvania to support advanced manufacturing, create jobs, and strengthen U.S. technology leadership and global competitiveness,” said Justin Hotard, President and CEO of Nokia.
Governor Shapiro said, “Nokia is doubling down on the Lehigh Valley and ensuring that the future of chip production continues to run through this region because we’ve made smart investments to make Pennsylvania more competitive and proven that our Commonwealth is a great place to do business,” said Governor Shapiro. Senator Dave McCormick said, “This is great news for Pennsylvania. Nokia is doubling its local workforce to more than 500 good-paying jobs in engineering, manufacturing, and R&D, all while expanding our ability to domestically produce the critical technologies that power AI infrastructure. This matters for both our economy and our national security,” said Senator Dave McCormick. Bill Frauenhofer said, “Nokia’s investment in Pennsylvania is directly advancing America’s AI leadership,” said Bill Frauenhofer. U.S. Congressman Ryan Mackenzie said, “Nokia’s latest investment is further proof that the Lehigh Valley is becoming a world leader in advanced manufacturing,” said U.S. Congressman Ryan Mackenzie. Nokia said the expansion was designed to bolster domestic supply chains for critical communications infrastructure and reinforce U.S. leadership in related technologies, and that it planned to invest $4 billion in R&D and manufacturing in the U.S. for AI-ready network connectivity.
Press release, provided by Globe Newswire on behalf of Nokia. Read the original.