Intel chooses small Polish town for 30 billion euro factory over other major European cities

Wroclaw, Poland’s third-largest city, emerged victorious last week in the competition to host Intel’s next chip factory in Europe, worth billions of dollars. The city’s two-year campaign, offering subsidies, infrastructure, talent, and a taste of American life, contributed to its success.

Europe, facing an unprecedented shortage of semiconductors, is providing substantial subsidies in the billions of euros to reduce its reliance on Asia. In return, Intel is making significant financial commitments. With Germany already securing a 30 billion euro investment, Poland decided to join the party and succeeded.

The achievement of Wroclaw can be seen as a testament to perseverance and determination.

On Friday, the U.S. chipmaker announced its decision to invest up to $4.6 billion in a new semiconductor facility near Wroclaw.

Through interviews with several Polish government officials and company executives, previously undisclosed details emerged about how this small city in southwestern Poland fulfilled all the necessary criteria to secure what the Prime Minister called the largest greenfield investment in the country’s history.

Intel highlighted that Poland impressed them initially with its prompt response to inquiries and effective resolution of concerns.

“When we started the process, Poland wasn’t on our radar,” said Intel CEO Pat Gelsinger in a press briefing.

Gelsinger compared the process of selecting a location for the chip factory to going on a date, where there was a strong sense that both parties wanted the relationship to succeed. He expressed a belief that the local government was genuinely committed to making the partnership work.

Poland began its efforts to attract Intel’s investment in July 2021. Over the next two years, government and municipal officials engaged in multiple meetings with the company. The interviews with officials and Intel executives revealed that two government agencies, the Polish Investment and Trade Agency (PAIH) and the Industrial Development Agency (ARP), played crucial roles in the process.

Due to the COVID-19 restrictions, many of the meetings were conducted remotely. However, Marcin Fabianowicz, the director of the PAIH’s investment centre, later had a face-to-face meeting with a representative from ARP and two senior Intel executives, further strengthening the engagement between the parties.

According to Intel CEO Pat Gelsinger, after the initial in-person meeting, he was convinced that Poland had a real chance of securing the project. The discussions were positive and moving in the right direction.

However, in March 2022, when Intel announced its investments in Europe, Germany was awarded a significant factory in Magdeburg, while Poland was informed that Intel would only expand its existing facility in Gdansk. Despite this setback, Poland remained determined and eventually reached a deal during a two-day meeting last month, as confirmed by officials.

Marcin Fabianowicz stated that Poland never gave up on the possibility and remained persistent throughout the process. The confidentially codenamed “Project IQ,” government and municipal officials worked on various strategies to attract Intel.

A team from an agency dedicated to promoting Wroclaw’s development prepared a presentation that highlighted the city’s quality of life, family-friendly facilities, schools, bike lanes, swimming pools, as well as economic and demographic data. Additionally, Intel executives were impressed by the fact that Wroclaw was home to Poland’s American football and basketball champions, showcasing the city’s sporting achievements.