Jane Edwards 
- Nokia has expanded advanced test and packaging operations in Pennsylvania for AI infrastructure
- The company plans to grow its workforce to more than 500 employees
- The expansion supports Nokia’s $4 billion U.S. investment plan for AI-ready network connectivity
Nokia has moved to expand its advanced test and packaging, or ATP, operations in Allentown, Pennsylvania, to increase domestic production of optical networking technologies used in artificial intelligence infrastructure.
The company said Tuesday the investment will expand manufacturing capacity for photonic chip packaging and testing while supporting job growth and semiconductor production in the U.S.
What Is Included in Nokia’s Semiconductor ATP Expansion?
Nokia said the investment will add manufacturing equipment and expand production space at the Allentown facility as part of efforts to strengthen domestic supply chains for critical communications infrastructure and bolster Pennsylvania’s role as an AI, advanced manufacturing and telecommunications tech hub.
The project combines approximately $30 million in company funding with state and federal incentives, including about $4 million from Pennsylvania and roughly $10 million through the federal CHIPS investment tax credit.
The company expects the upgrades to boost output capacity by up to 10 times, with the additional capacity scheduled to come online by the end of the third quarter.
According to Nokia, the expansion is expected to nearly double its Pennsylvania workforce to more than 500 employees across engineering, research and development, and manufacturing roles. The company also expects the project to generate more than $500 million in economic impact over the next five years.
What Did Nokia CEO Justin Hotard Say About the Expansion?
Justin Hotard, president and CEO of Nokia, said the ATP expansion represents an investment in the technologies needed to support growing AI infrastructure requirements.
“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,” Hotard said of the expansion.
How Does the Expansion Align With Nokia’s Multiyear Investment Plan?
Nokia said the Pennsylvania project is part of its multiyear plan to invest $4 billion in manufacturing and R&D activities in the U.S. to support AI-ready network connectivity.
Under the plan, Nokia will direct approximately $3.5 billion toward R&D activities, while allocating about $500 million for manufacturing and R&D investments in various states, including Pennsylvania, New Jersey and Texas.
