The European Commission has approved Poland’s plan to provide over 7.4 billion zlotys ($1.91 billion) in state aid to support Intel’s construction of a new semiconductor assembly and test facility near Wroclaw. This green light marks a significant step forward in the project, which is expected to be finalized by the end of the year.
The announcement follows a prenotification process with the Commission, which ensures that any state aid provided by EU member states complies with the bloc’s competition rules. Intel announced its plans to invest up to $4.6 billion in the facility last year, with potential for further expansion. The investment aligns with the European Chips Act, a 43 billion euro subsidy plan aimed at boosting Europe’s share of the global chip market to 20% by 2030.
Poland will now pass legislation on granting the public funds and formally notify the European Commission before finalizing the deal with Intel. Deputy Digital Affairs Minister Dariusz Standerski expressed confidence that the entire process will be completed by the end of the year.
The announcement comes amidst reports that Intel may be considering cost-cutting measures, including a potential pause on its $32 billion factory in Germany. However, Polish officials have stated that they have not received any indication that the investment in Poland is at risk.
Deputy Prime Minister and Digital Affairs Minister Krzysztof Gawkowski emphasized the significance of the Intel investment, calling it the largest in Poland in decades. He believes that the semiconductor facility will contribute to both economic development and national security.
Standerski highlighted Poland’s readiness for further new technology investments, stating that the experience gained with Intel will accelerate future projects.
The approval of state aid for the Intel chip plant signifies a major step towards establishing Poland as a key player in the global semiconductor industry. The project is expected to create numerous jobs and boost economic growth in the region.
