The European Commission has approved Poland’s plan to support the global technology giant Intel with more than 7.4 billion zlotys ($1.91 billion) in state aid for a new chip assembly and testing plant, the Polish government announced on Friday.

The approval comes as Intel faces cost-cutting measures that have raised concerns about possible delays or cancellations of its European expansion plans, including a major chip manufacturing facility in Germany.

Deputy Prime Minister Krzysztof Gawkowski said, "The European Commission has informed Poland that there is a green light for granting state aid to Intel. The public aid will amount to over 7.4 billion zlotys between 2024 and 2026. The total investment, including the aid package, exceeds 25 billion zlotys."

Poland now needs to pass legislation to grant the funds and formally notify the European Commission before finalizing the deal with Intel.

Deputy Digital Affairs Minister Dariusz Standerski said, "We expect the process to be completed by the end of the year."

An Intel spokesperson expressed appreciation for the Polish government's ongoing support and partnership. However, a representative for Intel’s related German project declined to comment beyond affirming the company's commitment to serving European customers and executing its plans. Intel’s $33 billion German project is still awaiting EU approval, with construction delayed until May 2025 at the earliest.

Intel announced last year its intention to invest up to $4.6 billion in the new facility near Wroclaw, with potential for further expansion. This investment aligns with the European Chips Act, a €43 billion subsidy plan aimed at increasing Europe’s share of the global chip market to 20% by 2030.

Gawkowski assured that Intel’s plans in Poland are on track, stating, "We have not received any signals of changes to the project. Based on current information, there is nothing that would delay this investment." He added that he hopes construction will start this year.

"This is the largest investment in Poland in decades. The Intel factory will boost economic growth and enhance security," he said.

Standerski added that Poland is prepared for more high-tech investments, and the experience with Intel will help accelerate future projects.