Nokia-owned Infinera buys its San Jose tech site, solidifying presence

A recent real estate transaction and subsequent manufacturing plans signal continued investment in Silicon Valley’s tech sector. Nokia-owned Infinera finalized the purchase of a South San Jose facility, bolstering its presence and paving the way for increased production of optical chips.

Expanding Capacity for Emerging Technologies

Infinera acquired the 82,100 square foot building at 6373 San Ignacio Ave. For just under $27 million, according to documents filed on February 18th with the Santa Clara County Recorder’s Office. The building, constructed in 2002, was sold by Beverly Hills-based Kennedy Wilson in an all-cash deal.

A Hub for Optical Chip Manufacturing

The site will house a new manufacturing plant for optical chips, a critical component in modern data networks. This production hub is located on the ground floor of the existing two-story office and research building. The companies anticipate this effort will generate up to 200 jobs.

Did You Know? Infinera initially decided to move its headquarters to the 6373 San Ignacio Ave. Site in 2019, relocating from Sunnyvale.

This move follows Nokia’s acquisition of Infinera in February 2025 for $2.3 billion. The acquisition integrated Infinera into Nokia’s optical networks business.

Strategic Implications of the Acquisition

Nokia’s CEO, Pekka Lundmark, stated that the acquisition would “significantly improve our scale and profitability in optical networks” and “speed up the pace of innovation to meet the requirements of the AI era.” The company framed the deal as creating an “innovation powerhouse.”

Expert Insight: The consolidation of Infinera into Nokia’s operations suggests a strategic effort to strengthen capabilities in optical networking, a foundational technology for supporting the increasing demands of data transmission and the emerging applications of artificial intelligence.

The investment in this San Jose facility represents a concrete step towards realizing those goals.

Frequently Asked Questions

What type of company is Infinera?

Infinera is a maker of optical chips.

How much did Nokia pay for Infinera?

Nokia bought Infinera for $2.3 billion in February 2025.

Where is the new manufacturing plant located?

The plant is located at 6373 San Ignacio Ave. In South San Jose, California.

As Nokia and Infinera integrate their operations, how might this consolidation impact the future development of optical chip technology and its applications?