Due to the company’s worsening financial situation, Intel is suspending its semiconductor factory construction projects in Poland and Germany for two years.

Just three days ago, Deputy Prime Minister and Minister of Digital Affairs, Krzysztof Gawkowski, announced that Poland would receive approximately seven billion zlotys from the European Commission as public aid for the construction of Intel’s semiconductor factory. This project is part of the government program titled „National Framework for Supporting Strategic Semiconductor Investments.”

Intel’s semiconductor integration and testing facility was initially planned to be built in the Legnica Special Economic Zone (LSSE). Preliminary work had already begun, with construction machinery on-site, and the area was being equipped with the necessary technical infrastructure required for the industrial park’s operation.

Next week, the Polish government is expected to send an official notification to the European Commission regarding the public aid for the construction of Intel’s factory near Wrocław.

The decision to build the factory was partly driven by the government’s assurances of public support.

Intel’s CEO, Pat Gelsinger, stated in a press release that during a „very productive and supportive board meeting,” the company decided to increase efficiency, improve profitability, and enhance market competitiveness. Intel is focused on developing a more competitive cost structure and achieving planned savings.

To reach these goals, the company is making a number of decisions, one of which is to suspend its projects in Poland and Germany „for about two years based on projected market demand.”
„There are no changes to our other production locations. We remain committed to our production investments in the USA and are continuing our projects in Arizona, Oregon, New Mexico, and Ohio,” Gelsinger wrote.

The Ministry of Digital Affairs confirmed in a statement that Intel’s CEO, Pat Gelsinger, had informed them of the company’s decision.

„Recognizing Intel’s global plans, the Ministry of Digital Affairs assures that it is open to intensively supporting other semiconductor investments in Poland in the coming months. The experiences and work carried out in cooperation with the European Commission allow for the efficient implementation of such projects in the future,” the statement reads.