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Intel to open $4.6bn assembly and test plant in Poland to other foundries

Intel to open $4.6bn assembly and test plant in Poland to other foundries

Business news |
By Nick Flaherty

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Intel is to build its first semiconductor assembly and test plant at Wrocław, Poland, and will support external foundries for the first time.

The company, which had previously looked in France and Italy for a site, will spend up to $4.6bn (€4.2bn) on the Polish plant to open by 2027. The plant will be able to accept wafers and chips from Intel, Intel Foundry Services or other foundries in a major move away from purely in-house capacity.

Design and planning for the facility will begin immediately, with construction to commence pending European Commission approval.

Intel points to the Polish plant alongside its existing wafer fabrication facility in Leixlip, Ireland, and its planned wafer fabication facility in Magdeburg, Germany, as key for end-to-end leading-edge semiconductor manufacturing value chain in Europe. It will also serve as a catalyst for additional ecosystem investments and innovation in Poland and across the European Union.

Poland was chosen for its infrastructure, strong talent base and excellent business environment says Intel. The proximity to Madgeburg, which is expected to see the levels of subsidy from the EU CHIPS Act increased to €9.9bn on Monday, and Leixlip will help increase resilience and cost efficiency of the European semiconductor supply chain. Access to the test and assembly plant for other foundries such as Global Foundries could well be part of that negotiation.

Intel has significant research and development operations in Gdańsk, the company’s largest R&D facility in Europe with nearly 4,000 workers.

“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. “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.”

Mateusz Morawiecki, prime minister of Poland, said, “We are pleased that the largest greenfield investment in the history of Poland is being led by Intel, a Silicon Valley legend known for its innovation. Chips and semiconductors are critical technologies in the 21st century and we are excited to expand Poland’s role in the global semiconductor supply chain and help to establish the country as an economic trendsetter.”

Recent global disruptions show the critical need to build a more resilient supply chain for semiconductors and Intel says it supports the European Union’s goal to reclaim 20 percent of global semiconductor manufacturing capacity by 2030.

www.intel.com

 

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