Nokia spending $30 million to expand Pennsylvania semiconductor operations

Nokia Corp. announced June 16 it would spend $30 million to expand operations at its semiconductor advanced test and packaging (ATP) factory in Allentown, Pennsylvania.

The ATP site helps Nokia produce photonic computer chips for use in AI data centers and telecommunications infrastructure. The new money is expected to add roughly 250 jobs to the site and increase production capacity at the facility by up to ten times; Nokia says this increased capacity should be commercially available before the end of the third quarter.

The $30 million investment, according to a Nokia release, comes alongside $10 million in federal investment tax credits from the CHIPS Act and $4 million in support from the state of Pennsylvania. Nokia said the $30 million was part of an ongoing funding blitz with the aim of spending $4 billion in U.S. AI infrastructure R&D.

In statements, company leadership emphasized the expansion is indeed keyed to expanses in AI infrastructure.

What people are saying

“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,” said Justin Hotard, President and CEO of Nokia.

“Nokia is doubling down on the Lehigh Valley and ensuring that the future of chip production continues to run through this region because we’ve made smart investments to make Pennsylvania more competitive and proven that our Commonwealth is a great place to do business,” said Governor Shapiro. “As demand for semiconductors continues to grow across industries, we’ll continue to position Pennsylvania as a leader in innovation, with a supportive, thriving business climate that helps companies compete on a global scale. From advanced manufacturing to the research and development of new technology like advanced chip packaging, Pennsylvania has all the resources to be a world leader in chip production.”

“Nokia’s investment in Pennsylvania is directly advancing America’s AI leadership,” said Bill Frauenhofer, Executive Director of Semiconductor Investment and Innovation at the Department of Commerce. “Supported by CHIPS and Science Act funding, Nokia is deepening its commitment to innovation and the production of photonic chips in the United States. This project enables critical optical technology and strengthens America’s semiconductor supply chain.”

Manufacturers investing in Pennsylvania

Schott Pharma cuts ribbon on Pennsylvania vial plant
The $60 million expansion will increase the company’s capacity for prefilled pharmaceutical vials.

Mondi to consolidate manufacturing in Pittsburgh, Pennsylvania
The packaging company is relocating 170 manufacturing jobs into a single location.

Terrapower Isotopes announces new Pennsylvania factory for cancer drugs
The new location will produce actinium-225 cancer treatment.

Investments in data center infrastructure

Amazon, Corning to partner on fiber-optics manufacturing
The “multibillion-dollar” deal will reportedly create 1,000 new jobs at Corning’s North Carolina factories.

Intermountain Electronics to expand Illinois facility
The expansion will increase the plant’s production of power distribution units for renewable energy sources.

ABB to spend $200 million on medium-voltage components in Europe
In March, the Swiss industrial company said it would spend $120 on a similar push in the United States.