The global semiconductor market, characterised by cyclical surges in demand and periodic supply shortages, has never been more strategically important. As industries ranging from automotive to artificial intelligence struggle with semiconductor bottlenecks, Europe’s vulnerability has become glaringly apparent.
With China, Taiwan, and the United States dominating production, Europe’s dependence on foreign semiconductor supply poses risks to its technological and economic resilience. In this context, Poland is emerging as a vital player in the semiconductor industry, spurred by recent investments and a focused strategy to become a central hub in the sector’s global ecosystem.
The global semiconductor market is poised to expand significantly in the coming years, with revenues projected to reach one trillion US dollars by 2030, according to McKinsey.
As the world digitalises further and next-generation technologies like electric vehicles and the Internet of Things (IoT) gain traction, demand for semiconductors is set to skyrocket. Europe, with its strong industrial base and thirst for technological self-sufficiency, has taken steps to boost domestic manufacturing capacity.
The EU’s Chips Act, launched in 2022, aims to increase Europe’s share of global semiconductor production from 10 per cent to 20 per cent by 2030, with 43 billion euros earmarked to support the effort.
Poland’s positioning as a semiconductor manufacturing hub forms a crucial part of this broader European ambition.
Poland’s semiconductor ambitions
Poland’s journey towards becoming a key player in the semiconductor industry has been nothing if not methodical, involving strategic investments, government incentives, and partnerships with major tech firms.
The country’s central location, smart workforce, and—relatively—low costs make it an attractive alternative for semiconductor companies looking to establish or expand their European operations.
A recent report from Kearney, a management consultancy, identified Poland as a pivotal player in the semiconductor ecosystem, especially in the back-end segment of the market—packaging, testing, and assembly.
“Poland is the frontrunner among EU countries and regions,” reads the report, which also identified Hungary, despite having limited semiconductor presence, as a strong contender.
While front-end manufacturing, which involves the creation of silicon wafers, typically attracts the most attention, the back-end processes are equally critical. Poland’s strength lies in its ability to offer skilled labour and infrastructure for these labour-intensive processes at competitive costs, helping to alleviate some of the industry’s production bottlenecks.
Kearney’s research emphasises that Poland’s value proposition lies in its ability to integrate into existing European semiconductor supply chains, offering scalability, and supporting the EU’s goal of achieving semiconductor sovereignty.
The country’s proximity to key European markets allows for just-in-time production capabilities, making it a favorable location for companies aiming to reduce dependency on Asian supply chains.
Investments shaping the sector
Poland has seen significant investments in its semiconductor sector, driven by both foreign multinationals and domestic players. In 2023, Intel announced a 4.6 billion euros investment to build a semiconductor assembly and test plant in Wrocław, which marked one of the largest foreign investments in Poland’s history.
Intel’s decision aligns with its global strategy to expand manufacturing and increase capacity to meet the growing demand for advanced chips, while providing a crucial vote of confidence in Poland’s capabilities.
The construction of Intel’s Wrocław plant, scheduled to begin operations in 2027, is not just a boon for Poland’s semiconductor aspirations but also a significant win for Europe’s tech sector. The facility is expected to create 2,000 direct jobs and thousands more in related industries, making it a major driver of economic growth.
Moreover, it signals the potential for Poland to attract additional high-tech investments, which could position the country as a regional semiconductor leader.
Another notable development is the expansion of the Kraków-based company Amkor Technology, which specialises in outsourced semiconductor packaging and test services. Amkor has doubled its capacity in Poland over the last three years, aiming to meet increased demand from European automotive and industrial clients.
The company’s success demonstrates Poland’s growing prominence in the back-end segment, which is less capital-intensive but remains critical for the functioning of the semiconductor value chain.
Semiconductor sovereignty
The strategic importance of semiconductors cannot be overstated. Often referred to as “the new oil”, they are essential for virtually all modern technologies, from smartphones to data centres.
As geopolitical tensions intensify and supply chain disruptions become more frequent, the risk of over-reliance on Asia for semiconductor supplies has come to the forefront. This has forced policymakers and businesses to reconsider their supply chains and diversify their sources of production.
Europe’s dependency on Taiwan, which produces over 60 per cent of the world’s semiconductors, leaves it particularly vulnerable to geopolitical risks. Any disruption in Taiwan, a focal point of US-China tensions, could have severe repercussions on Europe’s technology-driven industries.
Poland’s emergence as a semiconductor hub offers a partial solution to this dilemma. By localising more aspects of the semiconductor supply chain, Europe can better insulate itself from external risks, enhance its technological resilience, and secure its position in the global tech race.
Poland’s competitive edge
Poland’s ability to attract semiconductor investments is also tied to its well-educated workforce, with a strong tradition in engineering and technical disciplines.
Each year, Polish universities produce thousands of graduates in fields such as electronics, automation, and computer science, providing a ready talent pool for high-tech industries.
This competitive advantage is further enhanced by the presence of numerous research institutions, such as the Łukasiewicz Research Network, which collaborates with industry players on semiconductor research and development.
In terms of infrastructure, Poland has invested heavily in modernising its logistics and transport networks, which are critical for semiconductor manufacturing. This infrastructure includes not only roads and railways but also specialized facilities for semiconductor manufacturing, such as cleanrooms and precision equipment.
The country’s strategic location at the crossroads of Eastern and Western Europe facilitates efficient distribution and supply chain integration, offering semiconductor companies access to both established and emerging markets.
A catalyst for regional development
Poland’s rise in the semiconductor industry is not just a win for Warsaw but also a boost for Central and Eastern Europe as a whole. The region, which has long served as a manufacturing hub for automotive and industrial goods, is increasingly becoming a focal point for higher-value technology production.
Semiconductor investments, coupled with ongoing digital and green transformations, have the potential to elevate the economic status of Poland and its neighbours.
Poland’s success in the semiconductor sector could also encourage other countries in the region, such as Hungary—identified by Kearney—as well as Czechia and Slovakia, to ramp up efforts to attract semiconductor investments.
This could pave the way for a more integrated and diversified European semiconductor supply chain, reducing dependencies and fostering regional collaboration.
