Ireland needs a national computer chip strategy

Tyndall Institute says semiconductor industry should double in size by 2030

Tyndall Chair Dr Denis Doyle and Tyndall CEO, Prof William Scanlon at the launch of position paper. Picture: Ger McCarthy

A National Chip Strategy for Ireland should be prioritised with a target of more than doubling the size of the semiconductor industry here by 2030, research body the Tyndall Institute has said.

In a new position paper, backed by Intel and Analog, Tyndall said Ireland needs to make the most of the short window of opportunity for both private and public organisations to work together to position the country in the global semiconductor market.

They said the strategy would allow the country to benefit from the opportunities presented by the new EU Chips Act. The Act comprises a comprehensive set of measures worth €43bn to ensure the European semiconductor ecosystem stays relevant and to safeguard the EU’s strategic autonomy in the global supply chain of semiconductors.

Ireland has a strong semiconductor cluster that directly employs 20,000 people and will generate an estimated revenue of €15.5bn this year. The Tyndall National Institute in Cork is a key actor in European semiconductor research and innovation. The paper said it can play a pivotal role by utilising its network of global partnerships and experience.

The position paper has the backing of major chip manufacturers Intel and Analog who have significant operations in Ireland.

"The global semiconductor industry has never been more important and is poised to reach revenues of one trillion dollars by the end of this decade," Intel CEO Patrick Gelsinger said. "The launch of the Chips Acts in the US and EU underpins this growth. It also presents an important opportunity for Ireland to further build its ecosystem and participate in the future evolution of the semiconductor industry."

Vincent Roche, CEO and Chair of Analog Devices said semiconductor technology is the bedrock of important applications in medicine, energy, communications, and automation. "Essentially, the strides that we need to make in improving the health and welfare of humans and the planet will rely on continued advances in this critical foundational domain. It is expected that the semiconductor industry will double in size over the next decade to $1 trillion, and the US and EU Chips Acts are an essential step in this growth."

"ADI’s recent investment of €630m in a next-generation semiconductor R&D and manufacturing facility in Limerick is our latest commitment to strengthening the future of innovation in Ireland.”

Professor William Scanlon, CEO of Tyndall, said: "The publication of the paper provides the focus and intervention needed to make the most of the short window of opportunity for both private and public organisations to work together and to properly position Ireland in the global semiconductor market.”

Dr Giorgos Fagas, Head of CMOS++ and EU Programmes at Tyndall said: “Ireland is well positioned to exploit the opportunities in the European and global semiconductor ecosystem. However, to maintain and strengthen Ireland’s position in the current volatile environment requires coherent action in building the capacity to innovate, preparing skilful talent and securing new investments in the sector. This cannot be business as usual.”