Nokia is set to ramp up operations at its advanced test and packaging (ATP) facility in Allentown, Pennsylvania, with a major expansion set to bolster its optical networking production capacity.

The expansion will see the Finnish firm invest $30 million, which includes around $4 million in assistance from the state of Pennsylvania and $10 million in federal investment tax credit via the CHIPS Act.

– Giacomo Lee/SDxCentral

Nokia said the effort will almost double its Pennsylvania workforce to more than 500 jobs spanning engineering, manufacturing, and R&D, with a projected economic impact of more than $500 million over the next five years.

Currently, less than two percent of global semiconductor ATP takes place in the US at Nokia’s Allentown facility. But the vendor claimed its expansion will increase 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.