Published -June 16th, 2023 @ 4:27 PM (GMT+2)
Intel Announces $4.6 Billion Investment in Poland
Intel (NASDAQ:INTC), the US-based semiconductor giant, has announced plans to invest as much as $4.6 billion in a new chip assembly and testing facility near Wrocław, Poland. This is a part of their multi-billion-dollar investment scheme across Europe, aimed at increasing chip manufacturing capabilities
Jobs Creation with the New Facility
The new facility in Poland is expected to employ 2,000 workers, generating several thousand jobs during the construction phase and from supplier hiring.
Poland's Win and Subsidy Negotiations
Intel CEO Pat Gelsinger mentioned that Poland's eagerness was a decisive factor in the decision. Many countries have been actively seeking Intel's investment, with Germany and others negotiating subsidy amounts. A recent report suggested that the German government and Intel are close to agreeing on €9.9 billion ($10.83 billion) in subsidies, a significant increase from the originally agreed €6.8 billion.
Upcoming Meeting with German Chancellor
Gelsinger will meet German Chancellor Olaf Scholz on Monday to discuss the subsidy. However, the details of any subsidy Poland offers to Intel remain undisclosed.
Planning and Commencement of New Facility
The planning and design for the new facility will begin immediately, and construction will commence once the European Commission grants approval. The Prime Minister of Poland, Mateusz Morawiecki, lauded Intel's investment as "the largest greenfield investment in the history of Poland". The company, which has been present in Poland for 30 years and employs 4,000 workers, opted for Poland due to its infrastructure, availability of talent, and proximity to Intel's proposed factory in Germany and its site in Ireland. The new facility is anticipated to be operational by 2027.
Intel's Strategy for Regaining Dominance
This announcement aligns with Intel's strategy under Gelsinger's leadership, which involves substantial investments in building factories across three continents to regain its chip-making dominance and compete more effectively with rivals such as AMD (NASDAQ: AMD) , Nvidia (NASDAQ: NVDA) , and Samsung.
Regarding Intel's planned $1.5 Billion stake sale in Mobileye, read more
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