Telecom equipment vendor Nokia plans to expand its Allentown, Pennsylvania, advanced test and packaging (ATP) operations that will increase domestic production capacity of optical networking technologies in the U.S.
The expansion will nearly double Nokia’s Pennsylvania workforce to more than 500 jobs in engineering, manufacturing and R&D.
Nokia said that today less than 2% of global chip ATP takes place in the U.S. and the Allentown facility is one of only a few in the U.S. providing ATP for photonic chips that are used in optical modules for AI and telecom infrastructure.
Nokia said that the expansion will increase the site’s production capacity by up to 10 times its current level. This capacity is expected to be commercially available by the end of the third quarter in 2026.
“The AI supercycle is fundamentally reshaping network and infrastructure requirements in the U.S. and globally,” said Justin Hotard, president and CEO of Nokia. “Our expansion in Allentown is a direct investment in that future — scaling domestic manufacturing of the optical networking technologies that power AI infrastructure.”
The investment
The $30 million investment from Nokia includes about $10 million in CHIPS and Science Act investment tax credits and about $4 million in assistance from the state of Pennsylvania.
The investment is also part of Nokia’s multi-year plan to invest $4 billion in R&D and manufacturing it the U.S. for AI network connectivity.
The funding will result in domestic manufacturing of components used in AI infrastructure and significantly reduce energy use in AI communications.
