Pennsylvania has secured a $30 million investment from Nokia of America Corporation to expand its photonic semiconductor advanced test and packaging operations in Lehigh County. The Commonwealth is investing over $3 million in the project, which will create more than 250 new jobs over the next three years and retain 308 full-time positions.
The expansion is expected to nearly double Nokia’s Pennsylvania workforce to more than 500 jobs in research and development, engineering, and manufacturing, while generating a projected economic impact of more than $500 million over the next five years.
“AI is transforming network and infrastructure requirements, reshaping networks and global infrastructure demands,” said Justin Hotard, President and CEO of Nokia. “This investment increases domestic production of the critical optical networking technologies that power AI infrastructure. It strengthens U.S. capabilities in a strategic technology area and reflects Nokia’s continued commitment to investing in U.S. manufacturing, innovation, and technology leadership, while supporting Pennsylvania’s growing role in the AI economy.”
This project will expand Nokia’s existing photonic semiconductor ATP operations in Allentown by up to ten times its current level and the company has leased additional space for future product development and logistics. The trusted tech company’s growth in Allentown serves as a foundational anchor for Nokia’s U.S. semiconductor footprint, reinforcing Pennsylvania’s role as a crucial hub for the production of advanced semiconductors, which are used in broadband networks, fiber optic systems, and more. Less than two percent of global semiconductor ATP capacity is in the US, making Nokia’s investments even more critical in growing the Lehigh Valley’s role in global supply chains.
Nokia received a funding proposal from DCED for a $3.2 million Pennsylvania First grant and is eligible for at least $129,500 through the Manufacturing Tax Credit Program.
“Pennsylvania is competing and winning because trusted global companies like Nokia see the value of investing in our Commonwealth, our communities, and our workforce,” said DCED Secretary Siger. “This expansion in the Lehigh Valley will create hundreds of good-paying jobs, strengthen Pennsylvania’s advanced manufacturing and technology sectors, and build on the economic momentum Governor Shapiro is delivering across the Commonwealth. This project also reinforces the Lehigh Valley’s standing as a global leader when it comes to semiconductor manufacturing.”
Nokia is a global leader in connectivity for the AI era, providing the critical network infrastructure the world relies on. Nokia is the backbone of advanced connectivity across fixed, mobile and transport networks, delivering the performance and security needed to meet the demands of an AI-enabled future.
Viewed as the birthplace of semiconductors, the Lehigh Valley continues to be a hub of technological innovation. More than 1,100 people are employed at 35 semiconductor and related technology businesses in the region.
