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.

“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.”

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