Intel Announces US$2 billion Investment Into Ireland

Lisa Ugur, Tax-news.com, London

21 June 2000

This week Craig Barrett, president and CEO of Intel Corporation, the US computer chip maker, announced the largest ever industrial investment into Ireland, committing a chunky US$2 billion to a new wafer fabrication facility at the company's European manufacturing operations in Leixlip, near Dublin.

Ireland is extremely fortunate to have been chosen as the location for Intel's massive expansion, particularly in terms of the large-scale employment which will ensue. All the Intel facilities in the US and Mexico and its Israeli operation had fought a tough battle to land the new facility, named Fab 24, with the Israelis even offering strong cash inducements. But it is Ireland that has emerged victorious, and with construction due to begin immediately and first production expected in the second half of 2001, it takes Intel's cumulative investment in manufacturing facilities in Ireland to around US$4 billion.

The expansion will incorporate Intel's new 0.13-micron process technology with copper metallisation. The new factory will initially manufacture on 200 mm silicon wafers, but will be capable of moving at a later date to 300 mm wafers, the next generation of manufacturing technology.

Of the massive investment in Ireland, Barrett said 'Today's announcement of Fab 24 - together with our recent announcement of a major expansion project at our site in New Mexico in the United States - is reflective of our commitment to invest in manufacturing capacity to help us meet the growing future demand for our products. The additional manufacturing capacity will help us maintain our leadership in the extremely competitive world of semiconductors. It is a tribute to the quality of our team of managers and employees in Leixlip that Ireland has once again been chosen as the site for a major expansion project.'

Intel's plans for Ireland unsurprisingly have strong support from the Irish government. Mary Harney, Minister of Enterprise and Employment, and the deputy prime minister were both present at Intel's announcement, with the latter stating 'This new investment will bring Intel Ireland to the summit of manufacturing technology in the semiconductor sector globally, making it the most advanced wafer fabrication site in Europe. Intel's arrival in Ireland in 1989 created a sea change in the perception of this country as a technology center in Europe and generated a very significant and substantial chain effect in the industrial development process.'

Besides bringing Ireland to prominence as a major technological centre, the investment will have an major impact on local employment. The existing Leixlip facility, which builds Pentium III processors, Intel Celeron processors and supporting chipsets, already employs 3,000 people and the new project is expected to create over 1,000 new jobs by the year 2004. During construction, Fab 24 will be the largest single construction project in Ireland.

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