Intel to set up $4.6 billion chip assembly and testing plant in Poland

With an investment of up to $4.6 billion, the facility will support around 2,000 Intel employees, and its construction is expected to create numerous additional jobs. Photo/courtesy.

Intel has chosen a location near Wrocław, Poland, for its new state-of-the-art semiconductor assembly and test facility.

The facility, which will be able to expand, is expected to address the increasing demand for assembly and test capacity that Intel foresees by 2027.

With an investment of up to $4.6 billion, the facility will support around 2,000 Intel employees, and its construction is expected to create numerous additional jobs.

The design and planning phase will begin immediately, pending approval from the European Commission.

“By investing in Poland, along with its existing wafer fabrication facility in Ireland and the planned facility in Germany, Intel aims to establish a unique end-to-end semiconductor manufacturing value chain in Europe,” read part of a report on Intel’s official website.

According to the technology firm, this investment will not only spur further ecosystem investments and innovation within Poland and the European Union but also contribute to the creation of a more resilient and sustainable semiconductor supply chain, aligning with the EU’s objectives.

Intel Chief Executive Officer (CEO), Pat Gelsinger expressed enthusiasm about Poland’s potential, citing the country’s existing Intel operations, “Its favourable manufacturing costs compared to other global locations, and its promising talent pool.”

Mr Gelsinger acknowledged the support from Poland as Intel aims to foster the growth of the local semiconductor ecosystem and contribute to the EU’s goal of a resilient and sustainable supply chain.

Prime Minister Mateusz Morawiecki of Poland expressed satisfaction with Intel’s decision, recognizing the company’s reputation for innovation and its significant investment in the country.

“Poland sees this investment as an opportunity to expand its role in the global semiconductor supply chain and establish itself as an economic trendsetter,” the PM noted.

The selection of Poland as the site for the new facility was based on several factors, including its infrastructure, strong talent base, and favourable business environment.

Additionally, its proximity to Intel’s planned wafer fabrication site in Germany and its existing site in Ireland enables close collaboration among the three manufacturing sites, enhancing the resilience and cost efficiency of the European semiconductor supply chain.

Wafer fabrication facilities, also known as “fabs,” employ advanced chemical, mechanical, and optical processes to create chips on silicon wafers.

“Assembly and test facilities, like the one planned near Wrocław, receive completed wafers from fabs, cut them into individual chips, assemble them into final products, and test them for performance and quality.”

The finished chips are then delivered to customers. The facility will also have the capability to accept individual chips and assemble them into final products, along with accepting wafers and chips from Intel, Intel Foundry Services, or other foundries.

Intel stated that the new facility will generate well-paid permanent jobs, spanning various roles from engineers and business support functions to factory operators and equipment technicians.

“Poland’s strong technical talent base and excellent universities with robust engineering programs have been crucial to Intel’s operations in the country over the past three decades, including their significant research and development activities in Gdańsk, which is Intel’s largest R&D facility in Europe, employing nearly 4,000 workers.”

In light of recent global disruptions, there is a growing recognition of the need to establish a more resilient semiconductor supply chain.

Intel is aligned with the European Union’s objective of regaining 20 per cent of global semiconductor manufacturing capacity by 2030.

The company’s investments in Poland and Europe catalyze further investments from ecosystem companies and contribute to the development and attraction of talent necessary for a thriving European semiconductor industry.

Intel claims it is committed to sustainability and will adhere to high environmental standards in its global and European operations, including the planned facility near Wrocław.

The construction of the facility will follow green building principles to minimize its carbon footprint and environmental impact.