The project relies on a mix of funding, including $4 million in state assistance and $10 million in federal tax credits secured via the 2022 Chips Act. By expanding its footprint and upgrading equipment, the company expects to nearly double its local workforce, growing the team to more than 500 employees. Nokia projects this growth will generate an economic impact exceeding $500 million over the next five years.
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Nokia Pumps $30 Million into Pennsylvania Chip Facility
Nokia is pouring roughly $30 million into its Allentown, Pennsylvania, facility to scale up semiconductor testing and packaging. The investment aims to boost production capacity tenfold by the third quarter, positioning the site to meet the exploding demand for the optical networking hardware that underpins artificial intelligence infrastructure.
Justin Hotard, CEO of Nokia, framed the expansion as a response to the AI supercycle, which is currently forcing a massive overhaul of network infrastructure requirements globally. This site development is part of a broader, multi-year strategy in which the company has committed $4 billion toward manufacturing and research and development across the United States.
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