Poland’s massive Intel project stalled as Tusk’s government wants to renegotiate deal

There are fears Germany may move in and snatch up the semiconductor project

editor: Grzegorz Adamczyk
author: dorzeczy.pl

The new Polish government wishes to renegotiate an agreement with Intel over the construction of a components and semiconductor factory in Poland.

According to the Polish daily Dziennik Gazeta Prawna (DGP), the project is not under threat but is currently “suspended,” as the new government wants to obtain commitments from Intel regarding investing in Polish science. 

Under the Law and Justice (PiS) government, for whom attracting Intel was the largest of its industrial flagship projects, Poland undertook to provide $1.5 billion to aid the Intel investment, but that has to be green-lighted by the European Commission.

However, the first step of notifying Brussels has not yet been accomplished, and the Tusk government is not planning to do so in the near future. The Polish Ministry for Digital Affairs has informed DGP that the notification has not been delivered and simply reiterated that the government believes that the investment into semiconductors is a government priority.

The PiS party members are voicing their criticism towards Tusk’s government for its interference in major infrastructure and investment projects, including doubts cast over the Central Communication Port (CPK), nuclear energy development, and the Świnoujście container terminal. Their concerns extend now to the government’s handling of Intel’s investment, highlighting the risk that such interference could compromise the project.

Additionally, there’s speculation that Germany, where Intel is concurrently constructing a larger facility, might have intentions to acquire the portion of the investment originally planned for Poland.

The semiconductors industry is becoming one of key importance, as highlighted by the pandemic when the disruption in supply chains from Asia caused serious problems in production. 

The Intel plant in Poland is to be built near Wrocław in the west of the country, and include the most modern equipment for testing semiconductors. The $5 billion construction could begin even this quarter and be completed in three to four years.

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