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Intel wants to build chip factory in Wroclaw, Poland

The US group Intel is planning a new chip factory in Poland. The group is thus further expanding its presence in Europe. In the dispute over subsidies for the planned plant in Magdeburg, an agreement is apparently getting closer.

For Europe it could be a further step towards more independence in chip production: The world’s largest semiconductor manufacturer Intel wants to build a large chip factory in Wroclaw, Poland. In addition to production in Ireland and the planned plant in Magdeburg, it would be the US group’s third European location.

Microprocessors are to be assembled and tested in the Polish plant, as CEO Pat Gelsinger announced today in Breslau. He put the investment volume at the equivalent of 4.2 billion euros. Around 2,000 highly qualified jobs are to be created in the plant itself by 2027. Intel also expects several thousand more jobs to be created indirectly, in addition to potential supplier hires.

Poland a little “hungrier” than other countries?

As with almost all new chip factories worldwide, the decision to locate in Wrocław was linked to a government subsidy commitment. According to the Reuters news agency, Intel boss Gelsinger said: “Poland was just a bit hungrier” and thus prevailed against other countries that had competed for Intel to invest in their region.

Intel did not say how high the grants from the Polish government were. However, the group emphasized that the planned investment in Poland, together with the existing wafer production in Leixlip, Ireland, and the planned factory in Magdeburg, will help to create a continuous value chain for semiconductor production in Europe.

European market share is to be doubled

With a view to the risk of dependencies, the EU Council, together with the European Parliament, passed the so-called “chip law” in April of this year. Accordingly, the European market share of semiconductors is to be doubled from ten percent to at least 20 percent by 2030.

Behind this is the will of the EU to become more technologically independent of China. In order for international chip manufacturers to settle with large systems in Europe, she recently gave the green light for subsidies worth billions.

Intel boss meets the chancellor

There was recently a dispute within the government about the amount of the subsidy for the planned Intel plant in Magdeburg after Intel demanded more than the approved 6.8 billion euros in subsidies from the federal government. Finance Minister Christian Lindner (FDP) initially rejected this.

According to information from the “Handelsblatt” an agreement is getting closer. The paper quotes government circles, according to which the subsidies for the Intel factory in Magdeburg should now amount to 9.8 billion euros. The contract is about to be signed. As a government spokesman confirmed, the Intel boss wants to meet with Chancellor Olaf Scholz on Monday.

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