Intel Plans $4.6 Billion Chip Plant In Poland.

"Intel plans to build a $4.6 billion semiconductor assembly and test facility in Poland, giving the country a coveted place in the chip giant's growing European production footprint and boosting Europe's efforts at becoming more self-sufficient in chip production.

The planned factory will be built near the southwestern city of Wroclaw, already a hub for American business in Poland. It would be the latest addition to a European chip-supply line that leaders on the continent have pushed to bolster.

Europe and the U.S. are trying to pivot from their recent reliance on Asian capacity by plying semiconductor makers with subsidies and other economic incentives to build new factories on both sides of the Atlantic.

Intel already has a wafer fabrication site in Ireland and another planned in neighboring Germany. The three facilities will "increase resilience and cost efficiency of the European semiconductor supply chain," the company said.

The factory also represents an economic boost for Poland. The new facility would create some 2,000 Intel jobs and thousands more across the supply chain, Intel said.

The Poland site is planned to receive wafers from so-called wafer fabrication facilities, such as those in Ireland and Germany, cut them into individual chips and assemble and test them for performance before shipping to customers.

The investment comes amid a scramble by the U.S., Europe and Asia to subsidize homegrown chip-making capacity. Semiconductors go into just about every electronic device and are critical to a range of industries, including smartphones, cars, military equipment and healthcare devices.

A severe, global chip shortage in recent years severely disrupted the automotive and videogaming industries, in particular, exacerbating governments' concerns over their economies' access to chips.

The U.S. is pouring tens of billions of dollars in subsidies and tax credits to encourage chip makers to boost American manufacturing capacity. Other countries, especially in Asia, have doled out government dollars and offered favorable regulations for decades.

The European Union has promised its own tens of billions of dollars in public and private investment to expand continent-based capacity. Late last year, it agreed with Washington to work closely to strengthen semiconductor supply chains. That includes sharing information about their respective programs to provide subsidies to promote domestic chip production.

For Intel, the investment comes amid a push by Chief Executive Pat Gelsinger to boost semiconductor capacity and prevent becoming an also-ran in the global race to dominate the chip industry.

While Intel has lost market share in recent years to Asian players, executives have said they hope to boost sales in the coming years to become the world's second-largest producer after Taiwan Semiconductor Manufacturing." [1]

1. EXCHANGE --- Intel Plans $4.6 Billion Chip Plant In Poland. Grove, Thomas. 
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 17 June 2023: B.1.