Intel to Build a $4.6 Billion Factory in Poland

Due to the European environmental drift and the subsequent green deal required of all countries in the Union, many states are trying to reduce their dependence on Asian semiconductor suppliers, also suffering from shortages caused by the pandemic.

As part of this, Intel will build a $4.6 billion semiconductor assembly and testing plant in Poland.

The plant that be located in Wroclaw should help meet “critical demand for assembly and test tools” is expected by Intel to be ready by 2027. By then, Intel also plans to have its $17 billion semiconductor manufacturing plant ready in Magdeburg, Germany.

Despite the promises, negotiations with Berlin are getting more difficult than expected, as the semiconductor company claims the €6.8 billion subsidy could be insufficient due to inflation and rising government energy costs. Intel is asking for another 4 billion euros, a possibility that German finance minister Christian Lindner ruled out in a conversation with the Financial Times. However, the German media report differs, claiming that Germany may give in to pressure.

Meanwhile in Poland, Prime Minister Mateusz Morawiecki said he was “enthusiastic about expanding Poland’s role in the global semiconductor supply chain.” This is another step forward for the Poles, who have the largest Intel research and development center in Europe, in the city of Gdansk, that employs 4,000 people.

Both the Polish government and Intel keep silent about the grants that the company will receive for the construction of a plant in their country, but Intel has said that “as with all places where it operates, Intel will use appropriate incentives to ensure that its operations are globally competitive.”