Nokia will invest $30 million to expand its photonic semiconductor production operations in Pennsylvania, creating more than 250 new jobs and reinforcing the state’s position in the growing semiconductor and advanced manufacturing sectors.
The project, announced by Governor Josh Shapiro and the Pennsylvania Department of Community and Economic Development (DCED), will expand Nokia’s advanced test and packaging (ATP) operations in Lehigh County. The investment will also retain 308 existing jobs and is expected to nearly double the company’s Pennsylvania workforce to more than 500 employees across research, engineering, and manufacturing functions.
State officials estimate the project will generate more than $500 million in economic impact over the next five years.
The expansion will increase Nokia’s existing photonic semiconductor operations in Allentown by up to ten times current production levels. The company has also secured additional space to support future product development and logistics activities.
The Commonwealth is supporting the project with a $3.2 million Pennsylvania First grant, while Nokia is also eligible for incentives through the state’s Manufacturing Tax Credit Program.
Governor Shapiro said the investment highlights Pennsylvania’s growing competitiveness in semiconductor manufacturing and advanced technologies.
“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,” Shapiro said.
The investment comes amid growing efforts across the United States to strengthen domestic semiconductor supply chains. Advanced test and packaging capabilities remain concentrated overseas, with less than two percent of global ATP capacity currently located in the U.S.
Nokia’s expansion is expected to strengthen the Lehigh Valley’s role as a semiconductor manufacturing hub and support technologies used in broadband networks, fibre-optic communications, and AI infrastructure.
Justin Hotard, President and CEO of Nokia, said the project will increase domestic production capacity for critical optical networking technologies.
“AI is transforming network and infrastructure requirements,” Hotard said. “This investment 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.”
The Lehigh Valley has long been associated with semiconductor innovation and currently hosts 35 semiconductor and related technology companies employing more than 1,100 workers.
Don Cunningham, President and CEO of the Lehigh Valley Economic Development Corporation, said Nokia’s expansion reinforces the region’s importance to the sector.
“Nokia’s investment and expansion showcase the continued growth and importance of this critical technology sector here in the Lehigh Valley,” he said.
The project aligns with Pennsylvania’s broader economic development strategy, which identifies advanced manufacturing as a priority industry for attracting investment and creating high-quality jobs.
Since taking office, the Shapiro Administration says it has secured more than $41 billion in private-sector investment and supported the creation of over 24,000 jobs across the Commonwealth. Nokia’s latest expansion adds to a growing pipeline of manufacturing, technology, and life sciences projects helping to strengthen Pennsylvania’s position as a hub for innovation and advanced production.
