Intel Capital, the strategic investment arm of the multibillion-pound chip-design company, is targeting the Republic as one of three "hot" investment regions outside the US.
The company has appointed its first Irish-specific strategic investment manager and yesterday held an investment seminar in Dublin with some of the Republic's top venture capitalists.
In an interview with The Irish Times, Mr Damien Callaghan, Intel Capital's first senior strategic manager for Ireland, said Intel had identified the three "i"s - Ireland, India and Israel - as some of the hottest investment regions.
"The Republic has some world-leading technology and has a very positive environment for the industry in general with the government support," said Mr Callaghan. "In Ireland, there is something in almost every technology area, whereas say in Scandinavia it's just wireless.
"My job here is to identify the good young companies and invest, usually between $2-10 million for equity stakes under 20 per cent," he added.
Last year, Intel invested some $700 million in 55 technology company's throughout Europe. Intel now values this portfolio at more than $1 billion. Its worldwide investment portfolio is valued at $5.8 billion.
Some 10 per cent of its European investments last year were made in the Republic in companies such as Baltimore, Iona, IFS and Enba. This year, the company has invested in Braxtel Communications and Mobileaware.
According to Mr Tim Keating, director of Intel Capital Europe, Intel will continue to increase its investment spend outside the US over the next few years.
"Two to three years ago, our spend outside the US was extremely low but last year it was 30 per cent and next year we predict this to be around 40 per cent," said Mr Keating.
However, he insists the company does not place investment targets on the portfolio or any particular region within a portfolio. "We never do an investment without a strategic engagement. We are not financial investors," said Mr Keating.
And does Intel use equity investments as a means of defending its position from fast-moving and more flexible hi-tech start-ups?
"We realise we can't do it [build the Internet economy] all by ourselves, so we invest in companies to aid market development rather than as defensive plays," Mr Keating said.
An equity investment made by Intel is likely to be tied in with some partnership agreement to make software that will link with Intel's core products, he added.
Intel is currently using Baltimore's security encryption software to help with its pentium zinc processors and its health division in the US. Iona software is being used in Intel's titanium chip architecture.
And will the recent falls in technology stocks stop Intel Capital investing?
"The valuation of the portfolio declined last quarter but we aim long and will continue to develop strategic partnerships and investments," said Mr Keating.
