Nokia to Invest $30M in Pennsylvania Facility for 10x Photonic Chip Capacity
NOK•Nokia will invest $30 million to expand its Allentown, Pennsylvania chip facility, backed by $14 million in state aid and CHIPS Act credits to boost photonic chip production capacity tenfold. The expansion will add over 500 technical jobs and generate more than $500 million in economic impact over five years.
1. Expansion Overview
Nokia will invest $30 million to expand its photonic chip advanced test and packaging operations at the Allentown, Pennsylvania facility, leveraging $14 million in state aid and federal CHIPS Act tax credits as part of its $4 billion U.S. network connectivity program.
2. Capacity Increase and Timeline
Upgrades to manufacturing equipment and footprint expansion aim to boost photonic chip production capacity by up to tenfold, with the new capacity scheduled to become commercially available by the end of Q3.
3. Job Creation and Economic Impact
The expansion is expected to create over 500 new positions in engineering, manufacturing and R&D, and is projected to generate more than $500 million in economic impact across eastern Pennsylvania over the next five years.
4. Strategic Importance for AI Infrastructure
Enhanced domestic production of photonic chips will support scalable AI-native networks by reducing data transmission power requirements by up to 75%, strengthening Nokia’s position in high-speed optical networking for telecom and data centers.
