Intel plans €4.6B microchips factory in Poland
Intel, a company that makes microchips, said on Friday that it will invest €4.6 billion in Poland to increase its ability in Europe to put together and test microchips.
According to a statement from CEO Pat Gelsinger, a location in the southwest region of Poland near Wrocław has been chosen by the American company for their new factories, which are set to begin production in 2027. As part of their €33 billion investment plan across several European countries, including Germany, Ireland, Italy, Spain, and France, the company announced their decision to include Poland last year.
The factory in Wrocław aims to provide job opportunities for 2,000 people. It will collaborate with Intel's advanced microchips factory in Magdeburg, which costs €17 billion and is set to be operational in 2027. Additionally, Intel has a significant presence as a manufacturing center in Europe, particularly in Ireland.
The personnel at Intel's facilities in Germany and Ireland are responsible for manufacturing "wafers," which are utilized as the foundation for microprocessors. On the other hand, the recently established plant in Poland will be in charge of slicing the wafers into separate chips, putting them together and analyzing them before dispatching them to consumers.
Intel has not revealed the exact amount of money that the Polish government is contributing to the project.
The European Commission has not yet sanctioned the provision of financial assistance for the scheme.
Intel is currently holding discussions with the German government about the amount of financial assistance it will receive. The tech company had initially requested €6.8 billion in funds, but according to Bloomberg, it might potentially receive as much as €10 billion.
On Friday, European officials achieved a political victory with the announcement of an investment. Their aim is to increase the bloc's market share in the world's semiconductor value chain. They plan to reach 20 percent by 2030, which is currently only 9 percent.
In April of last year, the EU lawmakers came to an agreement on the Chips Act, a policy plan for industry valued at 43 billion euros. Just recently, the Commission has given its approval for 8 billion euros in funds under a state aid system that spans across borders and prioritizes certain industries. This could attract investment from private sources amounting up to 13.7 billion euros.
Additional content by Pieter Haeck
