Nokia is betting big on American silicon. The company announced a major expansion of its advanced test and packaging operations in Allentown, Pennsylvania, targeting a tenfold increase in photonic chip and optical module production capacity to feed the insatiable demand of AI infrastructure.
The new production capabilities are expected to come online by the end of Q3 2026.
What Nokia is actually building
Nokia’s Allentown facility focuses on advanced test and packaging, or ATP, for photonic chips and optical modules. The expansion is part of Nokia’s broader $4 billion commitment to US research, development, and manufacturing, first announced in November 2025. Roughly $500 million of that total is earmarked for manufacturing and R&D operations spanning multiple states, including Texas, New Jersey, and Pennsylvania.
Nokia expects the Pennsylvania site alone to employ over 500 workers once the expansion is complete. The company projects an economic impact exceeding $500 million over the next five years from this single facility.
