Poland shells out $1.8 billion to Intel, incentivizing the construction of a manufacturing facility in the vicinity of Wrocław
The United States chipmaker Intel is receiving a staggering $1.8 billion (approximately €1.6 billion) from Poland to establish a semiconductor factory close to Wrocław. This state aid was endorsed by the EU Commission, as announced by Poland's Digital Minister, Krzysztof Gawkowski, last Friday. Payment for this project is scheduled to occur by 2026. As per Deputy Minister Dariusz Standerski, there's optimism that the Intel contract will be signed by year's end, paving the way for the factory's construction commencement.
Last year, Intel presented an initiative to pump $4.6 billion into a plant situated in Miekinia, a 20-kilometer distance from Wrocław. At the new site, semiconductors will be produced and tested. The Polish Digital Ministry hailed this as "the largest foreign direct investment in Poland in quite a while."
Moreover, Intel plans to invest a billion dollars in Germany. A mega production facility is set to rise in Magdeburg. As per the German Federal Ministry of Economics, the investment totals €17 billion. The government has generally agreed to aid in this venture, though the exact sum is yet to be clarified.
Nevertheless, by early August, Intel announced a 15% reduction of its global workforce due to financial struggles. The company remained non-committal about whether this reduction would apply to its investment plans in Germany or Poland.
In alignment with its previous initiative, Intel is also planning to produce and test semiconductors at a new plant in Poland, investing $4.6 billion in Miekinia, near Wrocław. Following the establishment of Intel's semiconductor factory in Poland with EU aid, the country's Manufacturing sector is expected to see significant growth.
