On September 16 Intel announced a postponement of its plans to build major chip plants in Poland and Germany. The decision comes as the company faces mounting financial difficulties, forcing it to reassess its global investment strategy in an effort to cut costs, and also raising questions about the future of Europe’s growing chip supply chain.
Intel Delays Major European Projects by Two Years
In 2023, Intel first announced plans to invest in the construction of a semiconductor integration and testing facility in Miekinia, near Wroclaw in southwestern Poland. This initiative was expected to create 2,000 direct jobs, along with numerous additional employment opportunities for suppliers, during the construction phase of the plant.
However, last week U.S. tech giant delayed plans to build semiconductor factories in Poland and Germany by two years, citing global financial challenges. Intel CEO Pat Gelsinger explained that the decision was made to help the company meet its $10 billion cost-cutting target after suffering significant losses in 2023.
EU-Approved Polish Project Hit by Financial Issues
The postponement came despite the European Commission’s recent approval of state aid to support the project. The value of Poland’s aid was projected to reach over EUR 1.9 billion. The plant was intended to assemble and test semiconductor chips, contributing to Poland’s economic development and security.
Intel’s Broader EU Semiconductor Plan
The Polish plant was also intended to be part of Intel’s broader EU-wide semiconductor supply chain, which includes a wafer fabrication facility in Ireland and a planned facility in Germany. The goal of the project was to create Europe’s first comprehensive and most technologically advanced supply chain for semiconductor chip manufacturing.
Poland Remains Open to Semiconductor Investments
Despite this setback, Poland’s government remains committed to supporting semiconductor investments. It reiterated its readiness to engage in future projects and emphasized strong collaboration with the European Commission to facilitate new technological developments.
Photo Source: Freepik.com