Poland Secures Billions in State Aid for Intel Chip Plant Amid Cost-Cutting Concerns

The European Commission has approved Poland's request to provide over 7.4 billion zlotys in state aid to an Intel chip assembly and testing plant. This investment aligns with the European Chips Act, with the Polish government and Intel aiming to bolster Europe's chip market share. Poland hopes to finalize the deal by year's end.

The European Commission has given Poland the green light to support an Intel chip assembly and testing plant with over 7.4 billion zlotys ($1.91 billion) in state aid, the Polish government announced on Friday.

This decision comes as Intel faces cost-cutting pressures that have cast doubts on some of its European expansion plans, including a significant new chip manufacturing plant in Germany. Deputy Prime Minister Krzysztof Gawkowski stated, 'The European Commission has informed Poland that there is a green light for granting state aid to Intel.'

The public aid of over 7.4 billion zlotys is set for the years 2024-26, bringing the total investment value to more than 25 billion zlotys. Poland must now pass legislation on granting these public funds and then formally notify the European Commission to finalize the deal with Intel. Deputy Digital Affairs Minister Dariusz Standerski expressed confidence that the process will be completed by the year's end.

An Intel spokesperson expressed appreciation for the Polish government's support. Despite facing delays and awaiting EU approval for its $33 billion German project, Intel plans to invest up to $4.6 billion in the facility near Wroclaw, Poland, with potential for further expansion. This move aligns with the European Chips Act, aiming to increase Europe's global chip market share to 20% by 2030. Standerski emphasized that Poland is ready for further technological investments, viewing this as a significant step for the nation's economic development and security.

(With inputs from agencies.)