Intel Corp (INTC  ) has bagged approval from the European Commission to provide over 7.4 billion Polish złoty ($1.91 billion) in state grants to support building the chipmaker's new chip plant.

The European Commission will disburse the grant between 2024 and 2026, Reuters cites Poland's Deputy Prime Minister and Minister of Digital Affairs Krzysztof Gawkowski.

Intel chose Poland over Vietnam, citing insufficient investment incentives.

Intel initially announced plans in 2022 to invest up to $4.6 billion in building a semiconductor assembly and test facility near Wroclaw, Poland.

The process will likely be over by the end of 2024, Reuters cites Poland's Deputy Digital Affairs Minister Dariusz Standerski. Construction on the plant could begin later this year.

Intel stock has been down 50% in the last 12 months as it has failed to capitalize on the industry's shift to artificial intelligence. According to recent reports, it is eying a strategic stake sale of the Israeli autonomous driving company Mobileye Global Inc (MBLY  ) and its Enterprise Networking division.

Investors can gain exposure to Intel through SPDR Select Sector Fund - Technology (XLK  ) and Vanguard High Dividend Yield ETF (VYM  ).

Price Action: INTC stock is up 1.47% at $19.65 at the last check on Friday.