Intel will invest €18.6 million in a research and development project in Shannon to design processors for the next generation of telecommunications.Intel Communications Europe's "Westport" project aims to extend the role of the network processor throughout the communications industry.

The project will benefit from a €3.1 million grant under the Government's R&D Capability Grant Scheme.

Announcing details of the investment, The Tánaiste, Ms Harney, said: "This advanced technology centre will help develop the next generation of software aimed at the emerging 3G, wireless access and high-speed broadband markets."

She said it was one of the largest R&D projects undertaken in Ireland in recent times and was "exactly the type of knowledge-driven project the Government aims to encourage under the capability programme".

The Tánaiste added that the project demonstrated what could be achieved in successfully establishing leading-edge R&D capabilities in the regions.

Intel Communications Europe employs 100 staff at its Shannon base.

Mr Jim O'Hara, general manager of Intel Ireland, said: "This is a very strategic initiative for Intel and is another excellent example of Intel executing high-value engineering developments in Ireland with a highly talented group of software and IC engineers."

He acknowledged the support of the Irish education community and, in particular, the company's very close relationship with the University of Limerick.

Mr O'Hara said: "This project further establishes Intel Communications Europe as a global player by positioning Ireland as one of the key locations for innovative technological design for its future communications products."