Intel recently announced plans to build a semiconductor chip assembly and testing plant in Wroclaw, Poland. According to Reuters, the nearly $5 billion factory in Poland is expected to be operational in 2027, employing 2,000 workers and creating thousands of additional jobs during the construction phase, recruited by suppliers. The company said it chose Poland because of its infrastructure, human resources, and convenient location with facilities being deployed in Europe. This is part of the company's efforts to increase investment in European Union (EU) countries.

Intel's development strategy refers to a 10-year investment of $100 billion in the entire semiconductor chip supply chain in the "old continent", from research and development, production to finishing technology. Specifically, in addition to Poland, Intel is also building a super high-tech semiconductor chip manufacturing center in Magdeburg, Germany; a semiconductor chip research and development and design center near Paris, France; expanding and building new foundry and semiconductor chip manufacturing lines in Ireland, Italy and Spain. The goal of this plan is to contribute to doubling the EU's semiconductor chip market share from less than 10% today to double by 2030. "This investment is a memorable step for both Intel and Europe," Reuters quoted Intel CEO Pat Gelsinger as emphasizing.

The announcement comes as Intel is going through a difficult first quarter of 2023. The company recently announced its business results for the first three months of this year with revenue down nearly 36% compared to the same period last year due to reduced demand, especially for computer chips - the company's main product line. In the next quarter, Intel forecasts an additional 4% drop in average earnings per share. The Financial Times assessed that the US software giant's financial situation is quite tense.

Inside Intel's semiconductor chip factory in Ireland. Photo: Financial Times

In the late 2000s, Intel was still the world's leading semiconductor chip manufacturer. But now, the company has been surpassed by TSMC, Nvidia, Apple and Samsung. Intel's products have fallen behind in technology compared to many "big guys" in the industry. Therefore, the Financial Times commented that Intel under CEO Pat Gelsinger has been, is and will be actively investing in building facilities across the country, including in Europe, to reverse the decline and compete better with rivals, restoring the company's dominant position.

Meanwhile, the Covid-19 pandemic has caused a shortage of semiconductors, leading to a global shortage of electronic products. For its part, Europe is also keen to find ways to reduce its dependence on foreign semiconductor chip supplies such as the US or Asia while being besieged by many factors such as the pandemic, the US-China trade war or Russia's special military campaign in Ukraine. However, building its own semiconductor chip design and manufacturing facilities means that Europe will spend a lot of time, money and need the coordination of leading units in this field.

To make the most of external resources, the EU passed the Chip Act in early 2023 with large incentives for semiconductor companies. This law is expected to promote innovative research in Europe, encouraging leading semiconductor companies to move advanced production lines to the region to enjoy incentives. Intel is one of the units that seize this opportunity. Reuters said that Intel has been present in Europe for over 3 decades and is one of the high-tech corporations with good partnerships with EU governments. In the past two years, the company has invested more than 10 billion USD in European suppliers and plans to double it by 2026.

VAN HIEU