The European Union endorses financial assistance for Intel's manufacturing facility in Poland.
In the midst of Intel discussing potential budget cuts, European Union (EU) officials have given the green light to financial aid for Intel's planned facility in Poland. This was brought up by Poland's Digital Minister, Krzysztof Gawkowski.
This financial support from Poland totals approximately 1.7 billion euros. Before the contract with the struggling US firm can be officially inked, a relevant law must be passed, and the EU needs to be formally briefed. "We anticipate that this entire procedure will be concluded by the year's end," shared Deputy Digital Minister Dariusz Standerski.
Back in 2021, Intel declared intent to invest over 4.2 billion euros in a Polish plant located in Wrocław, making it a record-breaking investment for Poland. Alongside this, Intel revealed plans to construct an approximately 30 billion euro "Megafab" in Magdeburg, with the German government pledging a ten-billion-euro contribution. However, Intel's financial status has taken a hit as a result of decreased business. In response, the company's CEO, Pat Gelsinger, unveiled a billion-dollar cost-saving program that incorporates job cuts and investment reductions. The specifics of the cost-saving strategies remain unclear.
When questioned on potential delays in the Wrocław plant construction or potential project cancellation, Minister Gawkowski mentioned no such signs at this time. "Up to the present, there is nothing in sight that could hamper this investment." He is optimistic about construction commencing this year. The German government, the state of Saxony-Anhalt, and the city of Magdeburg continue to hold faith that Intel will adhere to its German "Megafab" plans. EU approval for the German project's state aid still awaits.
The EU officials' approval of financial aid for Intel's facility in Poland is seen as a boost for the company, as it navigates budget cuts. Despite Intel's financial struggles, the EU needs to be formally briefed before the contract with Poland can be officially finalized.
