In the biggest single multinational investment in the Republic to date, computer chip giant Intel has made a commitment to invest up to $2 billion (€2.1 billion) and create 1,000 new jobs by 2004 at its Leixlip facility. It will bring Intel's total cumulative investment in Ireland to $4.5 billion. The announcement is the culmination of three months negotiations between senior Intel management, IDA Ireland and Government officials.
The upgrade of Intel Ireland's European manufacturing centre has been given a deadline of 15 months - the fastest turnaround time required of an Intel facility to date - and will be constructed for the production of the latest .13 micron process technology.
It brings the company's total direct and indirect workforce in Ireland to 5,400, ranking it on a par with other key Intel sites in Oregon, Arizona and Mexico.
Construction work has already begun on the 135,000 square foot expansion which will be known as "Fab 24". The initial phase will involve the creation of 50,000 square feet of "cleanroom" manufacturing capacity. The announcement was made at Intel's Leixlip plant by Intel president and chief executive officer, Dr Craig Barrett, who said: "It is a tribute to the quality of our team of managers and employees in Leixlip that Ireland has once again been chosen as the site for a major expansion project. We now look forward to further cementing the strong relationship we have with the Irish people." IDA grant support for the latest Intel investment in Ireland is based on an original long-term agreement between Intel and IDA when it chose to locate here in 1989.
To date, the IDA's investment in Intel amounts to around £110 million, or around £24,000 (€30,474) per employee. The IDA has agreed similar grant aid for the latest investment.
With the skills shortage posing a growing problem, Intel will be expanding its entry requirements for its next round of employment. The company says the 1,000 jobs scheduled to be created by 2004 will be mainly for people with third-level certificates, diplomas or degrees. Non-technical graduates will be required to have a number of years work experience in any discipline. At present, three-quarters of Intel's Irish employees are third-level graduates from the universities and institutes of technology.
Attending the announcement, the Tanaiste and Minister for Enterprise and Employment, Ms Harney, said: "This new investment, which was won for Ireland against fierce international competition, will bring the Intel Leixlip site to the summit of manufacturing technology in the semiconductor sector globally, and will make it the most advanced wafer-fabrication site in Europe."
Construction work on the new facilities will take up to 18 months to complete.
