Intel to invest €5 billion in Ireland to expand AI chip production

LEIXLIP (Reuters) – Intel has announced a €5 billion ($5.7 billion) investment to upgrade its manufacturing campus in Ireland, aiming to expand European semiconductor production to meet growing global demand for artificial intelligence and high-performance computing.

The US chipmaker said the investment will modernise and maximise capacity at its Leixlip facility near Dublin, which manufactures Intel 3 silicon wafers and is regarded by the company as Europe's most advanced semiconductor manufacturing site.

The project will also connect the upgraded plant with Intel's other facilities on the campus, strengthen the company's European manufacturing network, advance research and development, and provide retraining opportunities for employees.

Intel Executive Vice President of Intel Foundry Naga Chandrasekaran said the company had already begun installing advanced manufacturing equipment that will support production of Intel Xeon 6 processors and next-generation Intel Xeon chips built on the Intel 3 manufacturing process.

He said rising global demand for servers and artificial intelligence was driving a significant increase in the need for Intel 3 wafers.

The investment is expected to create several hundred additional jobs, adding to Intel's existing workforce of about 4,900 employees in Ireland.

According to the company, most of the investment will be completed by the end of 2027 and will account for around 30% of Intel's planned $17 billion global capital expenditure for 2026.

Intel has invested approximately €30 billion in Ireland since 1989, with more than half of that amount spent between 2019 and 2023 on expanding semiconductor fabrication capacity.

Irish Prime Minister Micheál Martin welcomed the announcement, describing Intel's latest investment as a strong vote of confidence in Ireland's position as a leading destination for advanced manufacturing.