Nokia invests $30M in Allentown semiconductor advanced test and packaging expansion to bolster AI infrastructure connectivity

Type: Investment · Technology: Telecom · Country: United States · Value: $30M · Announced: 2026-06-16

Nokia committed $30 million to expand its advanced test and packaging (ATP) operations in Allentown, Pennsylvania, nearly doubling its local workforce to over 500 jobs in engineering, manufacturing, and R&D. The expansion will increase domestic production capacity of photonic chips for optical networking technologies used in AI infrastructure connectivity by up to 10 times, with new capacity expected by Q3 2026. The project includes $4 million in state assistance from Pennsylvania and $10 million in federal CHIPS Act investment tax credits, supported by bipartisan funding mechanisms. Nokia's optical technologies enable AI infrastructure with up to 75% energy reduction in communications, reinforcing domestic supply chains for critical communications infrastructure. The investment is part of Nokia's $4 billion multi-year plan to bolster U.S. AI-ready network connectivity and solidify Pennsylvania's role as a hub for advanced manufacturing and telecommunications technology.

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