Intel plans ~$4.6B semiconductor facility in Poland as EU eyes domestic resilience
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Intel (NASDAQ:INTC) plans to invest up to $4.6B to set up a semiconductor assembly and test facility near WrocÅaw, Poland, to help the EU work toward its goal of a more resilient semiconductor supply chain.
The factory will help meet demand for assembly and test capacity that the company expects by 2027.
The investment will create about 2,000 Intel jobs and thousands of indirect supplier and temporary construction jobs, according to the company.
Design and planning for the site will start immediately, and construction will begin after approval of the European Commission.
On Thursday it was reported that the Santa Clara, Calif.-based tech giant was close to a deal with the German government to receive up to $10.8B in subsidies for a new manufacturing plant in Magdeburg, Germany.
Intel said that the investment in Poland, its existing wafer fabrication facility in Leixlip, Ireland, and its planned wafer fabrication facility in Magdeburg, Germany, will help create a first-of-its-kind end-to-end leading-edge semiconductor manufacturing value chain in Europe.
In April, the EU passed the â¬43B Chips Act to bolster domestic production, following recent global semiconductor shortages and a complex geopolitical scenario, including tensions between the U.S. and China.
"Weâre grateful for the support from Poland as we work to grow the local semiconductor ecosystem and contribute to the EU's goal of creating a more resilient and sustainable semiconductor supply chain," said Intel CEO Pat Gelsinger.
Wafer fabrication facilities (also known as 'fabs') create chips on silicon wafers via certain processes. Facilities, such as the one planned near WrocÅaw, receive completed wafers from fabs, cut them into individual chips, assemble them into final products and test them for performance and quality. These finished chips are then shipped to customers, Intel noted.
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