Aiming to boost Europe’s chip market share, the European Comission has approved Poland’s plan to provide over $1.9 billion in state aid for an Intel chip plant, aligning with EU’s semiconductor policy.
The European Commission has approved Poland’s plan to provide over 7.4 billion zlotys ($1.91 billion) in state aid for an Intel chip plant, according to the Polish Deputy Prime Minister and Digital Affairs Minister Krzysztof Gawkowski.
The total investment, including the aid package, is estimated to exceed 25 billion zlotys over 2024-2026.
As noted by Deputy Digital Affairs Minister Dariusz Standerski, Poland currently requires passing legislation to release the funds and formally notify the European Commission before finalising the deal with Intel, a process expected to be completed by the end of this year.
This decision follows a prenotification process with the Commission to ensure compliance with EU competition rules.
Intel had previously announced a $4.6 billion investment in a new semiconductor facility near Wroclaw, Poland, as part of the European Chips Act, which aims to boost Europe’s global chip market share to 20% by 2030. Intel is also expected to present cost-cutting plans, potentially including a pause on its $32 billion German factory.
Gawkowski expressed confidence that no current issues are delaying the investment, hoping construction will begin this year. He emphasised that this project represents the largest investment in Poland in decades, promising significant economic and security benefits.
According to Standerski, Poland is prepared for more technology investments and that the Intel project will enhance the country’s capability to attract future investments.
