Intel to invest $5.7 billion in Ireland to expand AI chip output

DUBLIN: Intel said on Monday it will invest $5.7 billion in Ireland to expand and upgrade its operations there as demand rises for artificial intelligence and high-performance computing.

The US chipmaker said the spending will be used to enhance and fully utilise capacity at its Leixlip facility outside Dublin, where Intel 3 silicon wafers are produced. The company described the site as Europe’s most advanced semiconductor manufacturing facility of its type.

According to Intel, the project will also connect the Leixlip plant more closely with other factories on the campus, which serves as the company’s European manufacturing base. Naga Chandrasekaran, executive vice president of Intel Foundry, said the plan will also support research and development and include retraining for staff.

Investment tied to AI demand

Chandrasekaran said the rise in AI-related server needs is behind the latest commitment.

"The demand for servers, the demand for AI is driving a significant increase in the need for Intel 3 wafers."

He told reporters the investment would create several hundred additional jobs on top of Intel’s current workforce of 4,900 in Ireland. He also said most of the money would be committed by the end of 2027 and that the amount is equal to about 30% of Intel’s planned capital expenditure of $17 billion for 2026.

Longstanding presence in Ireland

Intel is one of the major multinational companies operating in Ireland’s economy, which is heavily shaped by foreign investment. The company said it has invested €30 billion in the country since 1989, with more than half of that amount spent between 2019 and 2023 on a fabrication facility expansion that doubled available capacity in Ireland.

Intel said the advanced manufacturing equipment it has started installing will help produce Intel Xeon 6 processors as well as the next generation of Intel Xeon chips made using the Intel 3 process.

Ireland remains highly dependent on jobs and tax revenues generated by foreign multinationals such as Intel. Foreign-owned companies have nearly doubled their workforce in Ireland over the past decade and now account for 11% of the country’s entire labour market.

Irish Prime Minister Micheal Martin said Intel’s latest announcement amounted to a strong endorsement of Ireland and its role as a destination for advanced manufacturing.