Intel, the world's largest chip maker by revenue, will invest up to $4.6 billion to build a new semiconductor assembly and test unit in Poland to expand its operations globally.
The new unit to be located near the city of Wroclaw, “will help meet critical demand for assembly and test capacity that Intel anticipates by 2027,” Intel said on its website.
The factory will also help create 2,000 jobs as well as thousands of other indirect supplier and temporary construction jobs.
“Poland is already home to Intel operations and is well positioned to work with Intel sites in Germany and Ireland,” said Intel chief executive Pat Gelsinger.
“It is also very cost-competitive with other manufacturing locations globally and offers a great talent base that we are excited to help to grow.”
Polish Prime Minister Mateusz Morawiecki said: "Chips and semiconductors are critical technologies in the 21st century and we are excited to expand Poland's role in the global semiconductor supply chain."
Semiconductors have a wide range of applications in various industries including in electronic devices, computers chips, medical devices as well as for manufacturing solar cells and cars.
The supply of semiconductors worldwide was affected by the coronavirus pandemic and countries are working to improve their supply and minimise disruptions.
Last month, the UK government unveiled a £1 billion ($1.24 billion), 20-year investment strategy into semiconductors, aimed at diversifying the supply chain in an attempt to enhance security.
In March, Canada announced a C$36 million ($26 million) contribution to help boost its supply of semiconductor products and services.
"Recent global disruptions show the critical need to build a more resilient supply chain for semiconductors," Intel said.
"Intel supports the European Union’s goal to reclaim 20 per cent of global semiconductor manufacturing capacity by 2030 and is investing in a global semiconductor supply chain that is resilient and geographically balanced."
The global semiconductor market was valued at $429.5 billion in 2021 and is set to surpass $712.4 billion by 2028, with an annual growth rate of 8.8 per cent during the forecast period, according to Vantage Market Research.
