WARSAW, Sept 12 (Reuters) - The European Commission has

given Poland a green light to support an Intel ( INTC ) chip

plant with more than 7.4 billion zlotys ($1.91 billion) in state

aid, deputy prime minister and digital affairs minister said on

Friday.

"The European Commission has informed Poland that there is a

green light for granting state aid to Intel ( INTC )," Krzysztof

Gawkowski said.

"The public aid that we will provide amounts to over 7.4

billion zlotys in the years 2024-26. Today this investment is

worth, both in terms of the aid package and in total, over 25

billion zlotys," he added.

Poland must now pass legislation on granting the public

funds and then formally notify the European Commission, before

it can finalise the deal with Intel ( INTC ).

"We assess that this whole process will be completed by the

end of the year," Deputy Digital Affairs Minister Dariusz

Standerski said.

The announcement follows a prenotification process with the

Commission, which is responsible for ensuring that any state aid

provided by EU member states complies with the bloc's

competition rules.

Intel ( INTC ) announced plans last year to invest up to $4.6 billion

in a new semiconductor assembly and test facility near Wroclaw

in south-western Poland, with capacity for further expansion.

The investment aligns with the European Chips Act, billed as

a 43 billion euro subsidy plan aimed at boosting Europe's share

of the global chip market to 20% by 2030.

Intel ( INTC ) is expected to present plans later this month to cut

costs and these could include a proposal to pause its $32

billion factory in Germany.

"We have not received any signals in recent weeks or months

regarding a change in position ... Based on today's information

there is nothing that would slow down this investment,"

Gawkowski said when asked about the risks to the investment in

Poland. He said he hoped Intel ( INTC ) could start construction works

this year.

"Investment in the Intel ( INTC ) factory is the largest investment

in Poland in decades... semiconductors in Poland will guarantee

both better economic development and greater security."

Standerski said that Poland is ready for further new

technology investments and the experience gained with Intel ( INTC ) will

help the country expedite future investments.

($1 = 3.8658 zlotys)