The European Commission has approved Poland's plan to provide over 7.4 billion zlotys (approximately $1.91 billion) in state aid to support an Intel chip manufacturing facility, as announced by Deputy Prime Minister and Minister of Digital Affairs Krzysztof Gawkowski on Friday.

He stated, "The European Commission has confirmed that we can proceed with state aid for Intel."

He further elaborated that the public funding will exceed 7.4 billion zlotys from 2024 to 2026, with the total investment, including the aid package, surpassing 25 billion zlotys.

Poland is now required to enact legislation to allocate these public funds and subsequently notify the European Commission before finalizing the agreement with Intel.

Deputy Digital Affairs Minister Dariusz Standerski indicated that they expect this process to be completed by the end of the year.

This announcement follows a prenotification phase with the Commission, which ensures that state aid from EU member states adheres to competition regulations.

Last year, Intel revealed plans to invest up to $4.6 billion in a new semiconductor assembly and testing facility near Wroclaw, Poland, with potential for future expansion.

This investment is in line with the European Chips Act, a 43 billion euro initiative aimed at increasing Europe's share of the global chip market to 20% by 2030.

Intel is anticipated to unveil cost-cutting plans later this month, which may include a proposal to pause its $32 billion factory project in Germany.

Gawkowski noted that there have been no recent indications of a shift in Intel's position, stating, "Based on the current information, there is nothing that would impede this investment."

He expressed optimism that construction could commence this year.

"The Intel factory represents the largest investment in Poland in decades... the semiconductor industry in Poland will ensure enhanced economic growth and improved security."

The investment in the Intel factory represents the most significant financial commitment in Poland in many years. The establishment of semiconductor production in the country is expected to enhance economic growth and improve security.

Standerski noted that Poland is well-prepared for additional investments in new technologies, and the insights gained from the Intel project will facilitate the acceleration of future investments.