Intel prepared quietly with campus revamp

An investment of $5 billion is not to be taken lightly, especially in the middle of an economic downturn. That's why Intel rolled out the big guns for its latest update on its Irish operations, with its president Renee James standing side by side with Taoiseach Enda Kenny and Tánaiste Eamon Gilmore to deliver the good news.

Coinciding with the 25-year anniversary of the company's operations in Ireland, the news will come as a boost to the company's 4,500-strong workforce in its Leixlip plant.

Speculation
The facility has been dogged with speculation in recent years as the Kildare plant appeared to be bypassed for the next generation of chip production, the 14 nanometer process, raising fears that the plant had fallen down Intel's list of priorities.

But while all the rumours were raging, it seems Intel was quietly pouring money into revamping the entire campus so it would be ready to start production on the next generation of Intel products as soon as the end of 2014.

Yesterday's announcement was followed by talk of Intel's long-term commitment to Ireland, from both Intel executives and the Taoiseach and Tánaiste. The $12.5 billion that the company has invested in Ireland to date is certainly impressive. However, as recently as the start of this year, Intel was in talks with Israel with a view to investing up to $15 billion in the country over 10 years.

High point
Despite its difficulties in recent years – falling PC sales have had a major impact on the company's revenue – Intel is still investing. In Ireland, that has also meant expanding out it of pure manufacturing and into research and development.

The development of the Galileo board and Quark chip in Ireland was a high point for the Leixlip facility last year.

"In so many ways it was a coup. Think about it: 25 years with a reputation for being able to manufacture, we think, the most complicated physical products on the planet. We're well regarded within the company and the industry," said Intel Ireland general manager Eamonn Sinnott. "To add to that a design competency adds a whole new feather to our cap."

There is room for expansion too at Leixlip. Intel has a policy of applying for “preparatory” permissions, to allow it to be ready to break ground on new facilities as quickly as possible. Planning permission has been granted for Fab34, but Mr Sinnott said that may never come to pass.

“We’ve been permitted to build what we call Fab34,” he said. “Whether or not it will is in the lap of the industry.”

Earlier this year, the firm indicated it would be “bringing down employment over the course of 2014” in a bid to trim costs following mixed financial results. While that could be a potential cloud on the horizon, Mr Sinnott said he was confident it would have a very limited impact on the Irish operation.