Intel confirms new multi-billion investment goes to continental Europe, not Ireland      

A team at the Intel plant in Leixlip, Co Kildare. Intel has confirmed that the vast bulk of a multi-year €70bn new investment is heading to continental Europe. It had said last year its headcount here would increase to 6,500 people from 5,000 staff it employs in Leixlip and in Shannon, Co Clare.

Intel has confirmed that the vast bulk of a multi-year €70bn new investment is heading for the first time to continental Europe, but the Government is taking solace as the semiconductor giant provided further details of plans for its longstanding Leixlip plant in Co Kildare. 

Ireland had competed by offering a greenfield site for the enormous investment that has the potential to create 10,000 jobs over the next decade. However, it emerged last year that Germany had won out as the new location.      

The plans are part of an enormous investment by the US chip giant that has been in Ireland for over 30 years. 

Germany has been named as the main location for a €17bn investment as Intel invests big in Europe in the coming decade. Intel will also build a design and research facility in France and a packaging and assembly site in Italy. 

Incentives to woo the chipmaker

The choice of sites comes after some EU governments, including Italy, have offered big incentives to try and woo the chipmaker to invest in their country. 

Intel had said last year that its existing plans for Ireland would mean its headcount here would increase to 6,500 people from 5,000 staff it employs in Leixlip and at another facility in Shannon, Co Clare.

In the early days, the Leixlip site became something of a symbol of Ireland's Celtic Tiger exports-centric economy and driven by US multinationals since the 1990s.    

The Leixlip site grew to cover 360 acres.

The new investments in Europe will help to meet surging demand for chips used in computers, cars, smartphones and other gadgets, reduce in the long run the region's reliance on Asian suppliers, and ease the supply crunch which has crippled the car industry. 

The US chipmaker is attempting to make up for the global shortages and to fight off competition to its once-dominant global position.

Taoiseach Micheál Martin said he had spoken to Intel chief executive Pat Gelsinger.

“This announcement firmly underlines the importance of Intel’s operations here for their future plans and the company’s deep and ongoing commitment to Ireland,” said Mr Martin.

Mr Gelsinger met in January with US president Joe Biden to hail an enormous $100bn (€91bn) investment by Intel in Ohio, after last year announcing plans to invest in an existing plant in Arizona. EU competition chief Margrethe Vestager warned last year about chipmakers playing governments off “against each other” for subsidies.