Intel plans €4.6B microchips factory in Poland

Microchips maker Intel on Friday announced a new €4.6 billion investment in Poland to increase its capacity for chip assembly and testing in Europe.

The US-based company has selected a site near Wroclaw in southwest Poland for the new factories to be operational in 2027, Chief Executive Officer Pat Gelsinger said in a statement. announced the firm Last year that Poland was among the countries that would benefit from the company̵7;s €33 billion investment plan across the bloc, along with Germany, Ireland, Italy, Spain and France.

The Wroclaw plant – expected to create 2,000 jobs onsite – will work closely with Intel’s €17 billion state-of-the-art microchips production site in Magdeburg, Germany, which is also scheduled to go live in 2027. Ireland is also a major manufacturing hub for Intel in Europe.

Whereas workers at Intel’s factories in Germany and Ireland would produce the “wafers” that serve as the basis for a microchip, the new Polish plant would cut those wafers into individual chips and assemble them before shipping them to customers. Will do and test them.

Intel did not disclose how much Polish government officials are contributing financially to the project.

The European Commission has not yet given its approval for State aid assistance for the project.

In Germany, Intel is still negotiating with the German government on the level of state aid assistance. Initially it was seeking €6.8 billion in state aid, but Bloomberg reported this week That support could go up to €10 billion.

The investment announced on Friday is a political victory for European officials, who are seeking to bring the bloc’s market share in the global semiconductor value chain to 20 percent by 2030, up from 9 percent earlier.

EU legislators reached an agreement on Chips Act, an industrial policy plan worth €43 billion last April. Last week, the commission also allowed €8 billion in funding under a cross-border state aid scheme for priority industries, which could lure €13.7 billion in private investment.