Inside Nokia’s US$30m US Photonic Semiconductor Expansion - Manufacturing Digital Magazine

Nokia has announced a $30 million expansion of its photonic chip testing and packaging (ATP) operations in Allentown, Pennsylvania. This initiative aims to significantly increase production capacity, ... Read original →

Nokia’s $30M photonic ATP expansion in Pennsylvania isn’t just about scaling—it’s a strategic pivot toward 'de-electrifying' U.S. AI infrastructure. By localizing light-based chip packaging, Nokia pressures upstream foundries like GlobalFoundries to fast-track EUV-compatible silicon photonics processes and accelerates CPO adoption by Nvidia and Cisco. While $10M in CHIPS tax credits eases capex, yield sensitivity to thermal control and cleanroom standards exposes lingering reliance on advanced packaging from Taiwan, China—a critical supply chain vulnerability. Intel is countering with vertical integration via its Silicon Photonics platform, while TSMC may deploy CoWoS-L as a defensive play. Within 18 months, domestic photonic ATP capability will likely become a de facto gatekeeper for U.S. AI hardware procurement, sidelining foreign suppliers lacking onshore packaging.