Intel to invest €4.2 billion in construction of new chip factory in Poland

A digital render of Intel’s planned new semiconductor facility in Poland (Image: Intel)

Computer chip manufacturer Intel is to invest €4.2 billion (US$4.6 billion) in the construction of a new semiconductor assembly and test facility in Wrocław, Poland.

Intel said that the facility’s construction would create thousands of jobs, in addition to the 2,000 permanent posts the completed complex will eventually support.

Design and planning will start immediately, with construction to commence pending European Commission approval.

Completion of the facility will be in 2027.

Intel said that recent global disruptions “show the critical need to build a more resilient supply chain” for semiconductors.

Meanwhile, the European Union has a goal to reclaim 20% of global semiconductor manufacturing capacity by 2030.

Intel said the planned investment in Poland, combined with its existing wafer fabrication facility in Leixlip, Ireland and its planned wafer fabrication facility in Magdeburg, Germany, would help to create an end-to-end semiconductor manufacturing value chain in Europe.

Wafer fabrication facilities (also known as “fabs”) create chips on silicon wafers through various advanced chemical, mechanical and optical processes. Assembly and test facilities, such as 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.

“Poland is already home to Intel operations and is well positioned to work with Intel sites in Germany and Ireland. It is also very cost-competitive with other manufacturing locations globally and offers a great talent base that we are excited to help to grow,” said Intel CEO Pat Gelsinger.