Global giant withdraws from Poland. Investment worth billions suspended in Lower Silesia

Intel announced that it intends to suspend key investments in Europe for two years, including the construction of a factory near Wrocław. This decision also applies to other projects in Germany. The information was conveyed by Intel CEO Pat Gelsinger to Minister of Digital Affairs Krzysztof Gawkowski, who informed about it via the X platform. The reason for the suspension of investments is the company’s global financial difficulties.

The decision was made despite the fact that just a week earlier the European Commission had approved public aid for investments in Poland in the amount of PLN 7.4 billion. Minister Gawkowski emphasized that in recent months the Polish government had been working intensively to support strategic semiconductor projects, with obtaining the green light for financing from the European Commission as a key step. Unfortunately, despite these efforts, global financial realities forced the company to change its plans.

What about investment and money?

The Polish Ministry of Finance has not yet commented on what will happen to the amount allocated for public aid for Intel, or whether the funds will be allocated differently.

Intel’s decision has sparked various political reactions, although it is not the result of the actions of the Polish government, but of the company’s financial problems. It is worth emphasizing that Intel’s problems are not only a challenge in Poland, but also in Germany, where it was also decided to suspend planned investments.

Intel has been struggling with financial problems for some time now, especially in the manufacturing sector, which has seen losses of up to 50 percent of its operating margin. The new factory in Poland was supposed to focus on this activity, which further highlights the scale of the problem. In the first quarter, the company reported a loss of $437 million, which influenced decisions to reduce costs worldwide, including eliminating over 15,000 jobs. Intel plans to save $10 billion by 2025.

The Intel factory was to become the largest foreign investment in Poland, started from scratch. Located in the commune of Miękinia, it was not only to create 2 thousand jobs, but also to drive the development of the newly established technology park within the Legnica Special Economic Zone.

Jan Grzegorczyn, the mayor of Miękinia, recalled that a year and a half ago no one had predicted that such an investment would be possible. Thanks to it, the commune was to gain not only new jobs, but also funds for the expansion of infrastructure, as well as the development of educational projects. The plans included the construction of a complex of electronic schools under the patronage of the Wrocław University of Science and Technology and the Intel company.

However, these plans were delayed. Intel was to start production within 3-4 years of receiving the approval of the European Commission. Work related to preparing the site has already begun, including macro-leveling of the 50-hectare plot and construction of a retention tank for rainwater.

Hope for Polish engineers

Greg Anderson, Intel’s investment manager in Poland, emphasized that the company planned to hire at least 2,000 people, including engineers of various specializations, such as mechanics, electronics, chemistry and physics. Recruitment processes have already been carried out, although now, after the suspension of investments, it is not known how they will be continued.

In a press release, Intel explained that the company is working to accelerate its strategy while reducing costs. Difficult decisions, such as job cuts, are intended to position the company for long-term growth. The company said that these processes will be conducted with respect for employees.