Intel to “no longer move forward” with planned new plant in Poland

Keep our news free from ads and paywalls by making a donation to support our work!

Notes from Poland is run by a small editorial team and is published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

US tech giant Intel has announced that it will “no longer move forward” with its previously planned new plant in Poland. The company initially suspended the project, as well as planned investments in neighbouring Germany, in September 2024 for two years.

The decision comes after Intel yesterday published its quarterly financial reports, which point to a net loss of $2.9 billion (10.5 billion zloty). The firm also confirmed workforce reduction of 15%.

The plans for an Intel plant in Poland that would assemble and test semiconductor chips were originally announced in 2023. It was to be located near the city of Wrocław, creating 2,000 new jobs, and would become part of an EU-wide semiconductor supply chain being developed by Intel.

The European Commission in September 2024 gave the green light for the Polish government to provide state aid for the plant. However, shortly after, Intel announced that the project would be postponed for two years due to the company’s efforts to cut costs amid lower-than-expected demand.

But after publishing its quarterly results yesterday, the plans to build facilities in Poland and Germany have now officially been abandoned entirely.

“Intel is taking action to optimize its manufacturing footprint and drive greater returns on invested capital,” the company explained in an official statement. “As part of this effort, Intel will no longer move forward with planned projects in Germany and Poland.”

Despite grossing $12.9 billion in revenue in the second quarter of 2024, the company noted a net loss of $2.9 billion, down by 81% compared to the same period last year.

“Over the past several years, the company invested too much, too soon – without adequate demand,” the company’s CEO, Lip-Bu Tan, said in his statement, adding that “we must correct our course”.

In response to its ongoing crisis, the company also confirmed earlier reports about layoffs, announcing a core workforce reduction of 15%.

“I know the past few months have not been easy,” said Tan. “We are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company.”

Poland has in recent years seen increased investment from US tech companies, with Microsoft vice chair and president Brad Smith in 2024 saying that the country is “the place to grow your [tech] business.”

In 2020, Microsoft announced that it would invest $1 billion in the country, including opening its first data centre in the region. That was followed this year by a subsequent $700 million investment from the firm.

In 2023, American payment giant Visa announced the creation of a global technology and product hub in Poland that will, among other things, develop the firm’s use of AI.

Notes from Poland is run by a small editorial team and published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

Main image credit: Intel

Agata Pyka

Agata Pyka is an Assistant Editor at Notes from Poland. She specialises in Central and Eastern European affairs, cybersecurity, and investigative reporting. She holds a master’s degree in political communication from the University of Amsterdam, and her work has appeared in Euractiv, the Balkan Investigative Reporting Network (BIRN), and The European Correspondent, among others.