News: Optoelectronics
7 August 2026
Nokia acquires NXP’s fab in Chandler, Arizona, for conversion to InP optical comms
Finland-based telecom equipment maker Nokia Corp says that, as part of its long-term plans for optical component manufacturing capacity expansion, it has entered into a definitive agreement to acquire the Chandler Semiconductor Fabrication campus in Arizona of NXP Semiconductors N.V. of Eindhoven, The Netherlands. Opened in September 2020, the fab has been focused on RF gallium nitride (GaN), but was scheduled to be closed by NXP in 2027.
Subject to the receipt of certain regulatory approvals, Nokia will initially lease manufacturing capacity in part of the facility on the site starting in early 2027 and will convert the site for the production of indium phosphide (InP)-based optical communications chips, targeting the booming demand for AI data-center applications. Nokia will then acquire the full site, with the transaction expected to close in first-quarter 2029.
Previously, at the end of February 2025, Nokia acquired the vertically integrated optical communications equipment maker Infinera Corp of San Jose, CA, USA, gaining an InP wafer fab in California and a back-end packaging facility in Pennsylvania. The firm says that it remains on track to begin ramping production at the San Jose fab later in fourth-quarter 2026. Also, during second-quarter 2026 Nokia announced an investment to increase the Pennsylvania plant’s test & packaging capacity by 10x, beginning in third-quarter 2026. These investments support the demand expected in 2027 and 2028.
Nokia says that acquiring NXP’s Chandler fab further strengthens its in-house compound semiconductor manufacturing capabilities by adding a highly experienced team with deep industry expertise. It also adds US-based InP manufacturing capacity at a time when secure and scalable domestic supply is becoming increasingly important for the broader US technology ecosystem and the AI data-center build-out.
Aixtron supplying G10-AsP MOCVD system to Nokia
Infinera’s acquisition by Nokia expected to complete on or about 28 February
