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   [75]comment bubble on black

Intel to build $4.6B assembly, testing site in Poland

   [76]comment bubble on black

Germany negotiations reportedly back on track for Magdeburg fab too

   icon [77]Tobias Mann
   Fri 16 Jun 2023 // 21:43 UTC
   (BUTTON)

   Intel will spend up to $4.6 billion building an assembly and testing
   facility located outside Wroclaw, Poland.

   The [78]announcement comes more than a year after Intel shared its plan
   to expand its presence in the country. While much of the fanfare around
   Intel's foundry push has centered around fabrication sites in the US
   and Germany, the Polish facility will play a supporting role in the
   chipmaker's European expansion.

   Once complete in 2027, Intel says the facility will employ 2,000
   full-time workers, with the goal of taking completed wafers from
   neighboring fabs, cutting them down into individual chips, and finally
   testing and packaging them.

   Intel notes that the facility will also be able to accept individual
   chips for assembly into final products, in line with the promise of
   Intel Foundry Services with its advanced packaging technologies. Many
   of Intel's internal products rely on third-party manufacturing from the
   likes of TSMC. The company's Ponte Vecchio series of datacenter GPUs is
   just one example.

   While Intel says it will invest up to $4.6 billion in the site, it's
   not clear how much of that could be covered by local government
   subsidies or by funds made available under the newly passed
   [79]European Chips Act.

   The decision to build the facility in Poland is less of a mystery. The
   x86 giant has existing offices in Gdańsk and would put assembly
   services in relative proximity to its planned Magdeburg, Germany fab
   site.

   "Poland is already home to Intel operations and is well positioned to
   work with Intel sites in Germany and Ireland. It is also very
   cost-competitive with other manufacturing locations globally and offers
   a great talent base," Intel CEO Pat Gelsinger said in a statement.
     * [80]Chinese chipmaker insists it has Intel on-side, not inside
     * [81]Nexperia left off subsidies list as Germany chips away at
       Chinese connection
     * [82]Former exec accused of trying to clone entire Samsung chip fab
       on Chinese soil
     * [83]Intel approached to take on key investor role in Arm IPO

   However, that proximity may not mean much if Intel can't get the German
   government to agree on funding for fab. Intel has been trying to
   [84]convince Germany officials to increase their contributions to the
   project for months now with little success to show for it.

   Inflationary pressures and rising material and labor costs have
   previously been cited as the cause of the delay, but it essentially
   boils down to Intel no longer being happy with the €6.8 billion in
   German cash it's already been promised.

   Earlier this week, Germany's finance minister put the [85]kibosh on the
   whole idea, saying there were no more subsidies available to help Intel
   build the fab.

   Just two days later, it appeared the country may have found a few
   billion Euros under the couch cushions after all, when local media
   [86]reported that officials were just days away from a €9.9 billion
   subsidy agreement. ®
   Get our [87]Tech Resources
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     * [88]Germany
     * [89]Intel
     * [90]Manufacturing

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   [117]comment bubble on black POST A COMMENT

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