EU OKs $1.9B Aid For Intel Polish Plant, Assuming X86 Giant Doesn't End Up Cutting It

Intel is scrambling to stanch the bleeding of its floundering foundry business, but in Poland at least the chipmaker's luck is looking up.

On Friday, Poland's Deputy Prime Minister Krzysztof Gawkowski revealed the European Commission has backed a $1.9 billion (7.4 billion zlotys) state aid package for Intel so that the x86 giant can expand its foundry plant in the nation.

"This investment is worth, both in terms of the aid package and in total, over 25 billion zlotys ($6.47 billion)," Gawkowski said.

The announcement comes a little over a year after Intel shared its plans to construct a $4.6 billion assembly and testing facility outside Wroclaw, Poland. The facility is expected to support Intel's other developments in the region and beyond, including its €30 billion chip fab in Magdeburg, Germany.

At the time, Intel claimed the facility in Poland would employ roughly 2,000 workers and be responsible for cutting down raw finished wafers manufactured by neighboring fabs into individual chips and chiplets for packaging.

Unfortunately for Intel, it'll be a hot minute before it can claim those sweet, sweet zlotys. While the EU has given the Polish government the green light to disburse the funds, there's still some red tape to clear. Specifically, the Polish government still needs to pass legislation and check some boxes with the European Commission before it can close the deal, something the nation's Deputy Digital Affairs Minister Dariusz Standerski expects should be completed by the end of the year.

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While a clear win for the glum American chipmaker, the EU approval may come too late to make a difference. With his foundry division bleeding billions of dollars each quarter, and more than 16,000 positions now on the chopping block, Intel CEO Pat Gelsinger will reportedly present remedies to his board later this month, which could include paring back or delaying its foundry expansion in some regions, and potentially even spinning off the division entirely.

If those plans do include delaying or canceling the Polish assembly plant, it'll be news to Gawkowski.

"We have not received any signals in recent weeks or months regarding a change in position … Based on today's information, there is nothing that would show a slowdown in this investment," he was quoted as saying. "Investment in the Intel factory in Poland will guarantee both better economic development and greater security."

The Register reached out to Intel for comment regarding the funding, and plans for the Polish plant. A spokesperson told us: "We appreciate the Polish governments’ continued support and partnership as we work towards our shared ambition of a more globally resilient semiconductor supply chain." ®