Nokia announces major expansion of US semiconductor advanced test and packaging in Pennsylvania to bolster AI growth

- Nokia expands U.S.-based advanced test and packaging operations, critical to the production of photonic chips that will power AI-native networks, with lower power consumption and greater operational efficiency.
- Investment strengthens U.S. domestic production of critical optical networking technologies powering AI infrastructure.
- Announcement is part of Nokia’s multi-year plan to invest $4 billion in R&D and manufacturing in the U.S. for AI-ready network connectivity.
Nokia t announced a major expansion of its advanced test and packaging operations in Allentown, Pennsylvania. The investment will increase domestic production capacity of the optical networking technologies that power scalable AI infrastructure connectivity across the United States. The expansion is expected to nearly double Nokia’s Pennsylvania workforce to more than 500 jobs in engineering, manufacturing, and R&D, while generating a projected economic impact of more than $500M over the next five years.
Today, less than two percent of global semiconductor ATP takes place in the U.S. Nokia’s Allentown facility is one of only a few in the U.S. providing ATP of photonic chips into optical modules for use in AI and telecom infrastructure. Through investment in new manufacturing equipment and an expanded manufacturing footprint, Nokia is increasing the site’s production capacity by up to 10 times its current level, with new capacity expected to be commercially available by the end of the third quarter.
Nokia’s optical technologies provide advanced connectivity solutions for telecom networks to enable AI infrastructure and can reduce energy usage by as much as 75 percent. Nokia’s investment results in the domestic manufacturing of components used in AI infrastructure, creates new jobs, and significantly reduces energy usage in AI communications.
“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.”
“This is great news for Pennsylvania. Nokia is doubling its local workforce to more than 500 good-paying jobs in engineering, manufacturing, and R&D, all while expanding our ability to domestically produce the critical technologies that power AI infrastructure. This matters for both our economy and our national security,” said Senator Dave McCormick. “These technologies also help cut energy use in AI communications, showing that we can lead on innovation while also smartly managing our resources at the same time.”
“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.”
“Nokia’s latest investment is further proof that the Lehigh Valley is becoming a world leader in advanced manufacturing,” said U.S. Congressman Ryan Mackenzie. “With the help of our unparalleled, highly-skilled workforce, Nokia’s local expansion will help our region continue to drive innovation and build the tools behind next-generation technologies. Congratulations to Nokia and the hundreds of local workers who will benefit from this investment.”
The investment includes approximately $30 million from Nokia, which includes bipartisan support of approximately $4 million in assistance from the state of Pennsylvania and approximately $10 million in federal CHIPS investment tax credit. This expansion is part of Nokia’s multi-year plan to invest $4 billion in R&D and manufacturing in the U.S. for AI-ready network connectivity. It is designed to bolster domestic supply chains for critical communications infrastructure, reinforce U.S. leadership in the technologies shaping the global AI economy and solidify Pennsylvania’s growing role as a hub for advanced manufacturing, telecommunications technology and AI infrastructure.
Related News.
November 3, 2026
Where Cyprus fits in the India–Europe Maritime Corridor
On 6 October, the Cyprus Ports Authority joined shipping, logistics and government representatives in New Delhi to work on the India–Middle…
Word newsletter,Technical newsletter
November 3, 2026
Mediterranean and Black Sea countries adopt 11 binding decisions to sustainably manage their fisheries
Twenty-five countries met this week in Rome to advance the sustainable exploitation of key stocks and promote responsible aquaculture across the…
November 3, 2026
Boluda Shipping signs agreement to acquire Samskip joining forces to build europe’s leading short-sea network
Boluda Shipping and Samskip have signed an agreement under which Boluda Shipping will acquire Samskip, including all its assets and operations.…
November 3, 2026
European gas touches €100 for first time since 2022 energy crisis as consumers, industry feel the pain
Europe's benchmark natural gas contract briefly touched €100 per megawatt hour (MWh) on Wednesday as disruptions to Middle East shipping…
November 3, 2026
South Korea targets Autonomous Ship Dominance
South Korea’s seas are set to become smarter with artificial intelligence. The government plans to secure fully unmanned autonomous navigation vessel…
November 3, 2026
Valenciaport awards the contract for the elevated seafront promenade at the Port of Valencia’s Marina
The aim of this project is to improve the elevated walkway on the northern breakwater at La Marina. The project, with a budget of €2,257,841.15 (VAT…
November 3, 2026
MOL holds FY2026 Safe Operation Liaison Meeting for Shipowners and Ship Management Companies
Mitsui O.S.K. Lines, announced that on October 27, it held the FY2026 Safe Operations Liaison Meeting in Osaka for Japanese and overseas shipowners…
November 3, 2026
DORIC WEEKLY INSIGHT 30 OCTOBER 2026
Please find below the DORIC Market Insight for the week ending 30 October 2026. Weekly Report 30.10.2026
November 3, 2026
ABP acquires leading Humber port logistics player Global Shipping Services
Associated British Ports , the UK’s largest port operator, is delighted to announce it has acquired Global Shipping Services , a leading provider of…
November 3, 2026
Ballast Water: BIMCO seeks clearer guidance for ships facing challenging water quality
BIMCO has co-sponsored a submission to MEPC 85 making the case for revising the IMO guidance related to ballast water management for…
Subscribe to our newsletter!
if you dont want to swim alone in the ocean of news, sign up for the newsletter, and you will receive daily all the important news of world shipping!
Design & Development by P.KAN.DESIGNER
© 2026 Cyprus Shipping News. All rights reserved
Design & Development by P.KAN.DESIGNER
© 2026 Cyprus Shipping News. All rights reserved























