Economy
September 12, 2024
Border
Less than
1
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Intel’s $4.6bn Investment in Poland Moves Forward

Intel is preparing to invest $4.6 billion in a semiconductor factory in Lower Silesia, Poland, the largest greenfield investment in Polish history. The Polish government is set to notify the European Commission next week regarding state aid for the project, which is crucial for moving forward. Despite Intel's global challenges, the investment in Poland remains on track.
Intel’s $4.6bn Investment in Poland Moves Forward
A rendering of the planned semiconductor facility In Lower Silesia, Poland - Unsplash

Intel’s planned semiconductor factory in Lower Silesia, Poland, is one step closer to becoming a reality. The Polish government is set to officially notify the European Commission next week regarding state aid for the $4.6 billion project. This investment, announced in June 2023 by then-Prime Minister Mateusz Morawiecki, will create approximately 2,000 jobs and represents the largest greenfield investment in Polish history.

The construction of the semiconductor integration and testing plant will take place in the Legnica Special Economic Zone (LSSE), with preliminary works, including land levelling and infrastructure development, already underway. The site is being prepared to accommodate the necessary technical requirements, with further progress dependent on the European Commission's approval of state aid.

The Polish government introduced the "National Framework for Supporting Strategic Semiconductor Investments" in December 2023, allocating over $1.8 billion to support projects like Intel’s, in line with the European Chip Act. The program aims to bolster Europe’s semiconductor capabilities and strengthen its position in technology. This year's budget includes over $700 million for the project.

The notification to the European Commission is a formal requirement under Article 108(3) of the Treaty on the Functioning of the European Union. The commission typically takes about two months to decide on such matters, and given the alignment of the project with the European Chip Act, a positive outcome is expected.

Despite Intel’s global challenges, including the announcement of 15,000 layoffs and financial setbacks, Polish officials are confident that the investment in Poland will proceed as planned. The factory is expected to contribute significantly to the region’s economic development and Poland's standing in the global semiconductor industry.

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