Intel to Build Chip Factory in Poland for Up to $4.6 Billion -- Update
June 16 2023 - 5:33AM
Dow Jones News
By Mauro Orru
Intel Corp. set out plans to build a new semiconductor assembly
and test facility in Poland for an investment of up to $4.6
billion, expanding in Europe in a move the company says will help
meet growing demand in coming years.
The chip maker said Friday that design and planning for the new
facility would begin immediately, with construction starting once
approved by the European Commission, the European Union's executive
arm. The new facility near Wroclaw will create some 2,000 Intel
jobs and thousands more across the supply chain, Intel said.
Intel Chief Executive Pat Gelsinger said Poland is very
cost-competitive compared with other manufacturing locations. The
group counts 30 years of operations in Poland, which hosts its
largest research and development facility in Europe with nearly
4,000 workers.
Intel already has a chip factory in Leixlip, Ireland, and has
planned a similar plant in Magdeburg, Germany. The new facility in
Poland will work closely with the other manufacturing hubs, adding
to cost efficiencies in the European semiconductor supply chain,
the company said.
The new Polish factory will receive wafers from so-called wafer
fabrication facilities, such as those in Ireland and Germany, to
cut them into individual chips, assemble and test them for
performance before shipping to customers. The plant will help meet
demand for assembly and test capacity that Intel is expecting by
2027.
Supply-chain snags during the Covid-19 pandemic helped spur
governments in the U.S. and Europe to set aside funding to
subsidize local chip production that had largely migrated to
Asia.
The U.S. last year passed the Chips Act to provide subsidies and
support for research and development to increase domestic
production, while the European Union also introduced similar
legislation. U.S. and European Union officials agreed to work
closely to strengthen semiconductor supply chains, including
sharing information about their respective programs to provide
subsidies and promote domestic chip production.
"We're 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," Gelsinger said.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
June 16, 2023 06:18 ET (10:18 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Intel (NASDAQ:INTC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Intel (NASDAQ:INTC)
Historical Stock Chart
From Aug 2023 to Aug 2024