Nokia Expands Semiconductor Test and Packaging in Pennsylvania

Nokia Oyj has announced a major expansion of its advanced test and packaging (ATP) operations in Allentown, Pennsylvania. The investment aims to increase domestic production capacity for optical networking technologies that are critical for scalable AI infrastructure connectivity across the United States.

The expansion is expected to nearly double Nokia's workforce in Pennsylvania to over 500 jobs in engineering, manufacturing, and R&D, projecting an economic impact exceeding $500 million over the next five years. Currently, less than two percent of global semiconductor ATP occurs in the U.S., and Nokia's Allentown facility is one of the few in the country providing ATP for photonic chips used in AI and telecom infrastructure.

Through investment in new manufacturing equipment and an expanded footprint, Nokia is increasing the site's production capacity up to tenfold. New capacity is anticipated to be commercially available by the end of the third quarter. Nokia's optical technologies can reduce energy usage by as much as 75 percent.

"The AI supercycle is fundamentally reshaping network and infrastructure requirements in the U.S. and globally," said Nokia President and CEO Justin Hotard. "Our expansion in Allentown is a direct investment in that future—scaling domestic manufacturing of the optical networking technologies that power AI infrastructure." The initiative is supported by state and federal funding.

This investment is part of Nokia's multi-year plan to invest $4 billion in U.S. R&D and manufacturing for AI-ready network connectivity. The expansion strengthens U.S. domestic production of critical optical networking technologies.