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Nokia, a Finnish telecommunications company, recently announced it will invest approximately $30 million to expand its advanced test and packaging (ATP) operations in Allentown. Approximately $4 million in state funding and approximately $10 million in a federal CHIPS investment tax credit will help fund the project.
The Allentown facility is one of only a few in the United States that provide ATP of photonic chips into optical modules for use in artificial intelligence and telecom infrastructure. Once the project is completed, the facility will have up to 10 times its current production capacity of the optical networking technologies.
Expansion will nearly double Nokia’s Pennsylvania work force to more than 500 and generate an estimated economic impact of more than $500 million over the next five years. The new capacity level is expected by the end of the third quarter.
“Our expansion in Allentown is a direct investment in that future — scaling domestic manufacturing of the optical networking technologies that power AI infrastructure,” Justin Hotard, Nokia president and CEO, said. “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.”