Nokia exands compound semi footprint
In its Q2 earnings report last week, Nokia announced that it has entered into an agreement to acquire NXP’s Chandler Semiconductor Fabrication campus in Arizona.
Subject to regulatory approvals, Nokia will initially lease manufacturing capacity in a portion of the facility on the site starting in early 2027 and will convert the site to InP semiconductor production for optical components.
Nokia will then acquire the full site, with the transaction expected to close in Q1 2029. The transaction, it says, will further strengthen its in-house compound semiconductor manufacturing capabilities through the addition of a highly experienced team with deep industry expertise.
The NXP fab adds US-based InP semiconductor manufacturing capacity at a time when secure and scalable domestic supply is becoming increasingly important for the broader US technology ecosystem and the AI supercycle build out.
Nokia said that it remains on track with its new San Jose Fab to begin ramping production later in Q4 2026 and announced during Q2 2026 an investment to increase its advanced test and packaging capacity in Pennsylvania by 10x beginning in Q3 2026. These investments support demand expected in 2027 and 2028.
