Poland on the verge of a semiconductor revolution

In the face of international tension and the growing need to diversify supplies, global corporations from the semiconductor and electronics sectors are looking for new, safe locations. Geopolitics therefore opens up a new window of opportunity for Poland.

Politically stable Poland, which is a member of the EU and NATO, with a dynamically developing economy and strategic location on trade routes, is becoming a natural candidate for large investments in this industry.

According to the “Semiconductors 2025” Report, developed by the Tek.info.pl portal team under the auspices of PAIH, it appears that Poland’s ecosystem is moving towards more complete value chains.

Segments with the highest growth dynamics

• back-end / assembly-packaging-testing (OSAT), advanced packaging (OSAT): globally, this is the fastest growing link in the chain — CAGR of 11.4% between 2022 and 2035 (from ~EUR 20 billion to ~EUR 80 billion),
• electronic components for  the automotive industry and IoT (among them PCBA, sensors): in the structure of advanced packaging applications, the automotive industry accounts for ~10 percent of the market (after consumer electronics and servers/telecoms), and in Poland the automotive industry has a strong R+D and production presence (Aptiv, ZF, including PCBA plants).

Component import and ecosystem evolution

• the report shows  the EU’s high dependence on non-EU suppliers: on average, ~80% of suppliers in the European chain are based outside the EU (based on JRC research cited in the report). This translates into the need to import components to Europe, including Poland,
• at the same time, in Poland, production has shifted from simple assembly in the 1990s to full NPI and PCBA processes, and at the same time, the number of R+D centres is growing — that is, imported parts are increasingly being finally integrated and tested in our country, which indicates that we are maturing towards more complete value chains.

Poland against the background of Europe and the world

The global semiconductor market in 2024 reached a value of over USD 570 billion. WSTS forecasts indicate that by 2030 it will exceed USD 1 trillion. The main sources of demand are artificial intelligence, electromobility, IoT and 5G/6G telecommunications.

Today, Europe is only responsible for  about 10 percent of chip production, while Asia controls over 70 percent.   This means tens of billions of euros of new investments. Poland, with its industrial and human resources potential, has a chance to attract a significant part of them.

Companies from the United States dominate among suppliers from outside the EU (36 percent ), followed by Taiwan (12 percent), China (11 percent), South Korea (10 percent) and Japan (9 percent).

An ecosystem that is growing

The largest companies in this industry are already operating on the Polish market:

• Intel – R&D centre in Gdańsk, one of the largest in Europe,
• Trumpf Huettinger – power supply technologies for plasma systems,
• SK Hynix – one of the global leaders in semiconductor memory.

Along with  them,  are companies with Polish capital that build unique competences:

• VIGO Photonics – a world leader in the production of infrared detectors,
• DCD Semi – specialized IP cores for digital systems,
• APS Energia – power solutions for industry and energy.

This is the nucleus of the semiconductor ecosystem, which is gaining in importance every year. Poland is no longer just an assembly plant – it is becoming a place where global capital, local innovation and science meet.

Poland’s chance of being a leader

Polish specializations are slowly emerging in the semiconductor supply chain:

• chip design and software – including EDA and IP cores tools,
• production and testing equipment – supplied both to the domestic and exported markets,
• back-end (assembly, packaging, chip testing) – a segment in which Europe has a very weak position (the share in the advanced packaging market is only 1.8 percent), and Poland is indicated as a country with a real chance to fill this gap.

As the Dean of the Wrocław University of Science and Technology stated: “Advanced PCBA assembly techniques can become our strategic skill and advantage.”

Poland’s advantage is the developed electronics industry. Companies operating in our country not only manufacture components, but also design and manufacture entire devices – from medical equipment, through industrial systems, to IoT and automotive solutions. This is proof that Poland can build entire branches  of high-tech industries, and semiconductors are the natural next stage.

Institutes of Higher Education  and business

Polish universities and research institutes have also recognised the potential of the sector:

• Gdańsk University of Technology and Wrocław University of Science and Technology conduct R+D projects with global corporations,
• IMiF, Unipress and Cezamat are involved in European research and ensure technology transfer.

Cooperation between Institutes of Higher Education and industry is an element that was missing in many previous waves of industrialization in Poland. This time we have a chance to avoid this mistake.

To order to take full advantage of this opportunity, Poland should:

• invest in the back-end (chip assembly, testing and packaging),
• maintain attractiveness for R&D centres
• strengthen cooperation between Institutes of Higher Education and industry,
• actively promote Polish companies in European supply chains.

Thanks to the implementation of these steps, Poland can become  a strategic semiconductor hub of Europe – a place where not only components, but also entire technologies of the future are created.

The entire Report is available on  PAIH ‘s website

Source: The Polish Investment and Trade Agency (PAIH)