Lehigh Valley Project Will Create More Than 250 New Jobs and Strengthen U.S. Advanced Chip Packaging Capacity
ALLENTOWN, Pa. (June 18, 2026) — Nokia of America Corporation will invest $30 million to expand its photonic semiconductor advanced test and packaging operations in Lehigh County, Pennsylvania, creating more than 250 new jobs over the next three years and retaining 308 existing full-time positions.
The expansion will significantly grow Nokia’s presence in the Lehigh Valley and reinforce Pennsylvania’s role in the production of advanced semiconductors used in broadband networks, fiber optic systems and other critical technologies.
The Commonwealth of Pennsylvania is supporting the project with more than $3 million in state investment, including a $3.2 million Pennsylvania First grant proposal coordinated through the Governor’s BusinessPA team. Nokia is also eligible for at least $129,500 through the Manufacturing Tax Credit Program.
Nokia Expansion to Nearly Double Pennsylvania Workforce
The project is expected to nearly double Nokia’s Pennsylvania workforce to more than 500 employees across research and development, engineering and manufacturing.
The expansion will also generate a projected economic impact of more than $500 million over the next five years.
Nokia’s project includes:
- $30 million in private investment
- More than 250 new jobs over three years
- Retention of 308 full-time positions
- Expansion of photonic semiconductor advanced test and packaging operations
- Additional leased space for product development and logistics
- Up to a tenfold increase in existing Allentown ATP operations
The company’s continued growth in Allentown will help anchor Nokia’s U.S. semiconductor footprint while supporting domestic production of advanced technologies needed for broadband, optical networking and AI infrastructure.
Pennsylvania Strengthens Role in Semiconductor Manufacturing
The Lehigh Valley has long been recognized as a center for semiconductor and optoelectronics innovation. Today, more than 1,100 people are employed by 35 semiconductor and related technology businesses in the region.
With less than two percent of global semiconductor advanced test and packaging capacity currently located in the United States, Nokia’s expansion is expected to strengthen the Lehigh Valley’s position in global technology supply chains.
“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 Josh 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.”
Project Supports AI, Broadband and Optical Networking Infrastructure
Nokia is a global connectivity leader focused on critical network infrastructure for the AI era. The company provides advanced technologies for fixed, mobile and transport networks, supporting the performance and security needed for next-generation digital systems.
“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.”
Commonwealth Investment Supports Job Creation and Advanced Manufacturing
Pennsylvania Department of Community and Economic Development Secretary Rick Siger said the investment demonstrates the state’s growing momentum in advanced manufacturing and technology.
“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 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.”
Lehigh Valley Builds on Semiconductor Legacy
Regional economic development leaders said Nokia’s expansion builds on the Lehigh Valley’s long-standing role in semiconductor innovation and strengthens the region’s position as a technology hub.
“Semiconductor and optoelectronics development have long been an important part of the Lehigh Valley economy,” said Don Cunningham, president and CEO of Lehigh Valley Economic Development Corporation. “Nokia’s investment and expansion here with the support of Governor Shapiro and the Commonwealth showcase the continued growth and importance of this critical technology sector here in the Lehigh Valley.”
Pennsylvania Continues to Attract Major Private-Sector Investment
Since taking office, the Shapiro Administration has secured more than $41 billion in private-sector investment, supporting the creation of more than 24,000 new jobs across Pennsylvania.
The Nokia expansion aligns with Governor Shapiro’s Economic Development Strategy, which identifies manufacturing as one of the key industries where Pennsylvania can build on its competitive advantages, support innovation and create new opportunities for workers.
The Commonwealth has also earned national recognition for its business climate and economic growth, including recognition from Site Selection Magazine and Area Development. Pennsylvania has also been identified as the only state in the Northeast with a growing economy, according to analysis cited by the Shapiro Administration.
About Nokia
Nokia is a global leader in connectivity for the AI era, providing critical network infrastructure across fixed, mobile and transport networks. The company delivers advanced connectivity solutions designed to support performance, security and innovation for an AI-enabled future.
About the Pennsylvania Department of Community and Economic Development
The Pennsylvania Department of Community and Economic Development works to support business growth, strengthen communities and advance economic opportunity across the Commonwealth. Through investment attraction, workforce development and community support programs, DCED helps Pennsylvania compete for jobs, innovation and long-term economic growth.
