Nokia has entered into a definitive agreement to acquire NXP Semiconductors’ Chandler manufacturing campus as part of a broader expansion of its U.S.-based optical component production capacity. Subject to regulatory approvals, Nokia will initially lease manufacturing space within a portion of the Chandler facility beginning in early 2027. The company plans to convert the site to produce indium phosphide semiconductors used in optical components.
Nokia is expected to acquire the full campus in the first quarter of 2029. Financial terms of the transaction were not disclosed. The acquisition will expand Nokia’s in-house compound semiconductor manufacturing capabilities and add an experienced semiconductor workforce to its U.S. operations. Nokia said the Chandler facility will provide secure and scalable domestic production capacity as demand grows for optical networking components supporting artificial intelligence and cloud infrastructure.
The Chandler investment is part of Nokia’s longer-term manufacturing expansion. The company expects its new semiconductor fabrication facility in San Jose to begin ramping production during the fourth quarter of 2026. Nokia is also increasing its advanced testing and packaging capacity in Pennsylvania tenfold beginning in the third quarter of 2026.
The investments are intended to support customer demand expected during 2027 and 2028. Nokia reported that second-quarter sales in its Optical Networks business increased 20% year over year, while sales to artificial intelligence and cloud customers increased 105%. The company received €2.8 billion in AI and cloud orders during the quarter and expects approximately half of those orders to convert into revenue over the next 12 months.
Nokia said industry demand remains strong, while manufacturing and supply capacity continue to be significant constraints. The Chandler acquisition will strengthen the company’s domestic supply chain as investment in artificial intelligence infrastructure accelerates across the United States.
