IDA in talks with Intel over €70bn investment

IDA Ireland chief executive Martin Shanahan: Intel is a hugely important investor for Ireland.

The IDA is in talks with computer chip-maker Intel in a bid to land an  $80bn (€70bn) investment, which would be the largest single spend in the State by any foreign multinational and could create up to 10,000 jobs over 10 years.

Intel is planning to invest in a mega semiconductor chip fabrication plant in Europe, with Ireland one of the potential locations being considered. The investment would see the company ramp up production of chips, the shortage of which has hit manufacturing of everything from cars and computers, to smartphones, televisions and smart watches.

A decision has been pending from Intel for a number of weeks, but selecting this country would be a huge confirmation that Ireland remains an attractive investment location despite pending changes to global corporation tax rates.

Speaking on the back of a strong set of foreign direct investment results for 2021, IDA Ireland chief executive Martin Shanahan said the IDA is still trying to attract the Intel investment.

“The IDA continues to engage with Intel on that. My expectation is the timing is shortening in terms of when we will know, but that is entirely a matter for Intel,” Mr Shanahan said.

Intel has already, this year, announced a €6bn expansion of its Irish operations in Leixlip, Co Kildare, which will more than double its manufacturing space here, boost its Irish workforce to 6,500 people and take its overall investment here to $22bn. The $80bn mega plant would require a 1,000 acre greenfield site.

“Regardless of any future investments, Intel is a hugely important investor for Ireland,” Mr Shanahan said, and that Ireland has benefited most obviously from Intel investment in Europe.

He said Ireland will remain a key European location for chip manufacturing regardless of any future investment.

Meanwhile, Mr Shanahan said Ireland should continue to attract high levels of in-bound investment from foreign multinationals during the first half of 2022, with the six-month pipeline of investments looking “extraordinarily strong”.

The IDA has reported its highest increase in foreign direct investment-related employment in a single year for 2021. Despite the disruption caused by the pandemic, foreign multinationals created more than 29,000 jobs in 2021, a net increase of nearly 17,000 on 2020.

A total of 249 overseas companies invested here during the year, 104 of which were totally new investments. More than half of the investments saw companies establish facilities outside Dublin.

The high level of new name companies and significant R&D spend illustrates a level of “future-proofing of foreign direct investment,” Mr Shanahan said.

He said Covid remains the biggest risk to foreign direct investment attraction, but Ireland has proved more resilient than might have been imagined 18 to 24 months ago. However, he warned that competitiveness remains key and Ireland cannot rest on its laurels.

“Ireland has to do more to remain attractive in an extremely competitive global environment for foreign direct investment,” he said, noting that client companies are increasingly embracing a green and digital recovery.