American technology giant Intel announced last year that it had struck a deal with the then government to use Poland as a site for a new cutting-edge semiconductor assembly and test facility after receiving assurances of public aid for the investment.

It was also announced at the time that it would cost almost 20 billion złoty ($4.6 billion) and create around 2,000 new jobs.

According to a resolution agreed upon at the end of 2023, over $700 million of public funding has been earmarked for the project.

However, the aid requires consent from the European Commission, which says the aid “may only be granted under a condition suspending the payment until its approval by the European Commission.”

Current state of play

The Ministry of Digital Affairs told the Polish daily newspaper Rzeczpospolita on Thursday: “We are currently at the stage of pre-notification of state aid to the European Commission—a formal procedure that includes (...) talks and negotiations with the Commission.

“We are cooperating with Intel and providing the Commission with the necessary information. We are responding to all questions and concerns on an ongoing basis.”

A European Commission official said: “The amount of public aid is one of the elements determined during cooperation with the European Commission.

“The Commission has two months to make a decision, and this period starts from the moment of submitting a complete notification.”

With a positive decision expected, however, the Polish government has already started preliminary works, and construction machinery has already arrived at the site in Wrocław, western Poland.

The area is currently being equipped with the necessary technical infrastructure needed for the operation of the industrial park.