ALLENTOWN, PA — Nokia of America Corporation will invest $30 million to expand semiconductor testing and packaging operations in Lehigh County, a project expected to create more than 250 jobs and strengthen Pennsylvania’s position in a critical segment of the domestic semiconductor supply chain.
Gov. Josh Shapiro and Pennsylvania Department of Community and Economic Development Secretary Rick Siger announced the investment Tuesday, saying the Commonwealth will provide more than $3 million in support for the project. Nokia plans to retain 308 existing full-time positions while expanding its photonic semiconductor advanced test and packaging operations in Allentown.
The expansion comes as federal and state policymakers seek to increase U.S. semiconductor manufacturing capacity and reduce reliance on overseas supply chains. According to the state, less than 2% of global advanced test and packaging capacity is currently located in the United States.
Nokia’s project is expected to nearly double its Pennsylvania workforce to more than 500 employees across research and development, engineering, and manufacturing functions. State officials estimate the investment will generate more than $500 million in economic impact over the next five years.
The company plans to expand its existing Allentown operation by as much as tenfold and has leased additional space to support future product development and logistics activities. The facility produces photonic semiconductor technologies used in broadband networks, fiber-optic systems, and other communications infrastructure.
“Nokia is doubling down on the Lehigh Valley and ensuring that the future of chip production continues to run through this region,” Shapiro said, citing the Commonwealth’s efforts to attract advanced manufacturing investment.
As part of the incentive package, Nokia received a proposed $3.2 million Pennsylvania First grant and may qualify for at least $129,500 through the state’s Manufacturing Tax Credit Program.
Justin Hotard, Nokia’s president and chief executive officer, said the investment will expand domestic production of optical networking technologies that support artificial intelligence infrastructure and strengthen U.S. manufacturing capabilities in a strategic technology sector.
Regional economic development officials said the project builds on the Lehigh Valley’s longstanding role in semiconductor and optoelectronics development. The state estimates more than 1,100 people are employed by 35 semiconductor and related technology companies in the region.
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