Poland Pursues Taiwan Investments to End Role as Assembly Hub

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(Bloomberg) — Poland is betting on a flood of investments and technology transfers from Taiwanese companies to reengineer its $1 trillion economy.

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Prime Minister Donald Tusk said on Tuesday that Poland will no longer be “just an assembly hub” as it pursues further investments from the likes of Foxconn. The firm, whose full name is Hon Hai Precision Industry Co., last month agreed to build electric vehicles in the European Union nation and now could be a partner in a semiconductor venture, he said.

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The government’s aim is to boost manufacturing and the country’s high-tech chops in an era of volatile global politics and strained supply lines. Asian partners would invest in the relatively low cost, fast-growing country and expand their foothold in the EU’s 450 million person market. 

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“The changing geopolitical situation shows that Europe needs to rebuild its own production capacities in key technologies,” Deputy Technology and Development Minister Michal Jaros told Bloomberg News. “The pandemic, the war in Ukraine and trade tensions have highlighted the risks linked to excessive dependence on distant markets.”

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Foxconn, a key supplier for Apple Inc., is set to invest more than $1 billion in the Polish EV project, Jaros said in an interview. The planned factory will produce cars under a new local brand and will become Foxconn’s center for the Taiwanese firm’s European expansion.

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Tusk’s government withdrew from talks with Chinese automakers amid concern that Poland would not be able to gain access to the technology. 

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Next Step

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The next step is to build a technology park where members of the Taiwan Electrical and Electronic Manufacturers Association, headed by Foxconn’s chairman, could invest several billion dollars, Jaros said.

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The decision on what will be produced there is due in late 2026, with proposals including automotive electronics, AI server components, industrial robots, circuit boards and semiconductors, Jaros said.

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The park may be located in Miekinia, about 150 kilometers (93 miles) from the German border, the town where Intel Corp. planned to build a semiconductor factory before abandoning the idea, Tusk said. 

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“A large American company pulled out and we have begun talks with partners who were interested, including in the location where we have already invested money,” the prime minister said at an event hosted at the Warsaw Stock Exchange. “We will have a semiconductor factory there in cooperation with the same Taiwanese partner.”

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After an immigration visa scandal under the previous government, Tusk tightened regulations on hiring employees from abroad, including sought-after specialists. Now, the government wants to speed up procedures for foreign investors from places like Australia, Canada, Japan, South Korea and Taiwan. Such firms will be able to fast track hiring of high skilled workers and will arrange formalities in a one-stop-shop, Jaros said. They will also have wider access to grants and tax relief programs.

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The investments by the Taiwanese companies could jointly amount to the “biggest foreign venture in Poland’s history,” Jaros said. 

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“We’re talking about building the whole ecosystem, which includes production, R&D, logistics, education and corresponding services,” Jaros said. “This is the way to build a strong economy.”

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—With assistance from Konrad Krasuski.

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