Intel received $1.9 billion in subsidies to build a plant in Poland

The European Commission has given Poland the green light to support the opening of a new Intel chip assembly and testing plant. The EU investment will amount to more than 7.4 billion zlotys (1.91 billion US dollars). The European Commission’s decision was made at a difficult time for Intel, which is doing its best to cut costs. This has raised questions about the feasibility of the company’s European expansion plans, which also include setting up a large chip manufacturing facility in Germany.

Last year, Intel announced plans to invest up to $4.6 billion in a facility near Wroclaw in southwestern Poland, with the possibility of further expansion. The investment is in line with the European Chip Law, billed as a €43 billion subsidy plan aimed at increasing Europe’s share of the global chip market to 20% by 2030.

«The European Commission has informed Poland that there is a green light to provide state aid to Intel. The state aid we will provide amounts to more than PLN 7.4 billion in 2024-2026. Today these investments are worth, both in terms of the aid package and in total, more than 25 billion zlotys,” said Deputy Prime Minister Krzysztof Gawkowski.

«In recent weeks or months, we have not received any signals regarding a change in position… Based on today’s information, there is nothing that could slow down these investments,” Gawkowski said when asked about the risks for investments in Poland. He expressed hope that Intel would be able to begin construction work this year. Poland must now pass legislation to provide public funds and then formally notify the European Commission.

«“We estimate that this process will be completed by the end of the year,” says Deputy Minister for Digital Affairs Dariusz Standerski. “The investment in the Intel plant is the largest investment in Poland in decades…semiconductors in Poland will guarantee both better economic development and greater security.”

An Intel spokesperson said the company appreciates the “ongoing support and partnership of the Polish government.” The company has a research center in Gdansk in northern Poland. Regarding the German project, an Intel representative refrained from commenting. A $33 billion chip plant project in Germany is still awaiting EU approval, with the start of work delayed until May 2025.