ESPOO (dpa-AFX) - Nokia Oyj (NOK, NOKIA_SEK.ST) announced that it plans to invest $30 million to expand advanced test and packaging operations at its Allentown, Pennsylvania facility to boost U.S. production of optical networking chips used in artificial intelligence infrastructure.
The Finnish telecom equipment maker said the expansion will increase production capacity for photonic chips by up to 10 times and nearly double its Pennsylvania workforce to more than 500 jobs in engineering, manufacturing and R&D.
The project will generate an economic impact of more than $500 million over the next five years. New capacity is expected to be commercially available by the end of the third quarter.
The investment totals about $30 million from Nokia and includes about $4 million in assistance from Pennsylvania State and about $10 million in federal CHIPS Act tax credits.
The expansion is part of Nokia's multi-year plan to invest $4 billion in U.S. R&D and manufacturing for AI-ready network connectivity in connection with U.S. Government plan to boost domestic manufacturing.
At present, less than 2 percent of global semiconductor advanced test and packaging, or ATP, takes place in the U.S. Nokia's Allentown site is one of only a few in the U.S. facilities providing ATP of photonic chips for AI and telecom infrastructure.
Nokia said that its optical technologies can reduce energy usage by as much as 75 percent.
In Overnight trading on NYSE, shares of Nokia were up 1.22 percent, changing hands at $14.15, after closing Tuesday's regular session 5.67 percent lower.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
