Nokia announced a major expansion of its advanced test and packaging (ATP) operations in Allentown, Pennsylvania. The 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 $500M over the next five years.
Today, less than two percent of global semiconductor ATP takes place in the U.S. Nokia’s Allentown facility is one of only a few in the U.S. providing ATP of photonic chips into optical modules for use in AI and telecom infrastructure. 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.
Nokia’s optical technologies provide advanced connectivity solutions for telecom networks to enable AI infrastructure and can reduce energy usage by as much as 75 percent. Nokia’s investment results in the domestic manufacturing of components used in AI infrastructure, creates new jobs, and significantly reduces energy usage in AI communications.
The investment includes approximately $30 million from Nokia, which includes bipartisan support of approximately $4 million in assistance from the state of Pennsylvania and approximately $10 million in federal CHIPS investment tax credit. This expansion is part of Nokia’s multi-year plan to invest $4 billion in R&D and manufacturing in the U.S. for AI-ready network connectivity. It is designed to bolster domestic supply chains for critical communications infrastructure, reinforce U.S. leadership in the technologies shaping the global AI economy and solidify Pennsylvania’s growing role as a hub for advanced manufacturing, telecommunications technology and AI infrastructure.
Justin Hotard, President and CEO of Nokia
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.