How Poland landed a multi-billion dollar investment from Intel

In order to lessen its reliance on Asia in the face of an unprecedented semiconductor scarcity, Europe is providing billions of euros in subsidies. In exchange, Intel is making significant financial commitments, and Poland chose to join the celebration since Germany had already secured a 30 billion euro investment.

With a two-year campaign promising subsidies, infrastructure, talent, and a taste of American life, Wroclaw, the third-largest city in Poland, defeated rivals last week to become the location of the next multi-billion dollar Intel chip factory in Europe.

In order to lessen its reliance on Asia in the face of an unprecedented semiconductor scarcity, Europe is providing billions of euros in subsidies. In exchange, Intel is making significant financial commitments, and Poland chose to join the celebration since Germany had already secured a 30 billion euro investment.

Its ultimate achievement can be viewed as a lesson in tenacity.

Last Friday, the American chipmaker announced its decision to invest up to $4.6 billion in the brand-new semiconductor plant outside of Wroclaw.

Previously undisclosed information on how a small city in southwest Poland checked all the right boxes to get what its prime minister claimed was the largest greenfield investment in its history was revealed during interviews with a half-dozen Polish government officials and business executives.

Poland, according to Intel, first wowed executives with the timeliness of its questions and concerns responses.

According to Intel CEO Pat Gelsinger, “We hadn’t considered Poland when we began the process.”

“Consider going on a date while you choose your destination. You get the feeling that they genuinely want this to succeed, according to Gelsinger. We firmly believe that the local authority wants to make this work after our visit.

In July 2021, Poland started wooing Intel. According to interviews with five officials and three executives from Intel, government and municipal representatives met with the firm frequently throughout the course of the following two years.

According to officials, the Industrial Development Agency (ARP) and the Polish Investment and Trade Agency (PAIH) both played significant roles in the process.

According to officials, several sessions were held remotely as a result of COVID-19 restrictions. Later, two senior Intel executives and an ARP official met with Marcin Fabianowicz, director of the PAIH’s investment center.

After the initial face-to-face meeting, he felt Poland had a chance of winning the deal. The conversations were cordial and moving in the right direction.

However, when Intel first revealed its plans to invest in Europe in March 2022, Germany was given a significant factory in Magdeburg, but Intel informed Poland that it would only be expanding its current Gdansk facility.

Poland didn’t give up and, according to officials, managed to reach an agreement after a two-day summit last month.

Fabianowicz stated, “We never claimed something can’t be done.

Secret plans to entice the chipmaker were developed under the codename “Project IQ” by government and local officials.

A team from a company promoting the growth of Wroclaw created a presentation showing the city’s amenities for families, schools, bike lanes, swimming pools, and other amenities, as well as its economic and demographic statistics.

Additionally, Wroclaw’s status as the home of Poland’s champion basketball and American football teams impressed Intel executives.

SNOWBALL EFFECT

The new Intel facility will be located on a 285-hectare site next to a PepsiCo chip factory that produces edible chips as well as a window manufacturer.

According to the European Parliament, the global shortage of semiconductors, which has affected the production of everything from cellphones to electric vehicles, is projected to persist through 2023 since it takes two to three years to develop a new chip-making factory.

Miekinia and Sroda Slaska are the two municipalities that share the land in Wroclaw.

According to Adam Ruciski, mayor of Sroda Slaska, the area would invest in high-voltage power lines, electric buses, a water treatment plant, and new roads near the factory.

According to him, Intel has also been given permission to develop structures that are 50 meters (54.68 yards) tall instead of the typical 20 meters.

The largest contract chipmaker in the world, Taiwan Semiconductor Manufacturing Corp (TSMC), is one of the businesses Poland is trying to entice to invest there.

Several executives reported that negotiations with TSMC began last year.

According to Jakub Mazur, deputy mayor of Wroclaw, “We are at a point where we are getting our 5 minutes (of fame), so a lot of entities are interested.” “Intel’s entry will have a snowball effect, bringing back discussions from Taiwan in our direction.”