Intel suspends plans to build chip factory in Poland and Germany for about 2 years
US tech company Intel, as part of a restructuring outlined Monday, has decided to put on hold plans to build a chip factory in Poland and Germany for about two years, the company's CEO Pat Gelsinger announced.
"Intel will also suspend its operations in Poland and Germany for about two years based on anticipated market demand," Gelsinger said.
Intel has also decided to withdraw from plans for a factory in Malaysia. U.S. manufacturing projects will remain intact.
Gelsinger said the company is about halfway through the layoffs announced in August.
Intel's decision to suspend investments in Poland, among other countries, was also announced on X by Deputy Prime Minister and digital affairs minister Krzysztof Gawkowski.
"Intel is suspending for two years its key investments in Europe - including the construction of a factory in Poland - due to the company's global financial problems. I was informed of this by Pat Gelsinger, Intel's CEO," Gawkowski wrote.
"Over the past months we have been working on preparing strategic semiconductor investments. Last week, we got the green light from the European Commission to apply for state aid for Intel. This experience allows us to efficiently implement similar projects, and we will work on this in the future," he added.
Intel had announced for several years that it would build a USD 4.6 billion semiconductor integration and testing facility in Poland. The factory was to create 2,000 jobs. The municipality of Miekinia near Wroclaw was chosen as the location for the semiconductor factory.
Intel's investment in Poland was to, in conjunction with an existing so-called silicon wafer plant in Ireland and a second planned silicon wafer plant in Magdeburg, Germany, help create the first of its kind in Europe, a comprehensive and most technologically advanced supply chain for semiconductor chip manufacturing.
It was also expected to be a catalyst for additional investment in the ecosystem and innovation in Poland and across the European Union.
Intel shares rose nearly 10 percent in extended trading Monday after the company said it plans to transform its foundry business into an independent entity with its own management and the potential to raise outside capital.
As part of CEO Pat Gelsinger's efforts to turn around the troubled chipmaker's fortunes, Intel said in a memo to employees that it would also sell part of its stake in Altera.
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