Xilinx, a US-based firm that designs microchips for the electronics and communications industries, opened a €52 million facility in Dublin yesterday.About 340 staff already work at the office in Citywest but this is expected to grow to about 500 over the next few years, despite a severe downturn in the sector.
In another welcome boost to the depressed semiconductor sector, Xilinx said business was slightly better than expected in the current financial quarter .
Xilinx is one of a select group of global technology firms that has not laid off workers over the past two years. Its chief executive, Mr Wim Roelandts, said yesterday it was still planning to grow its Irish workforce over the next few years.
"We decided not to do lay offs although some analysts were calling for this. . . Instead we reduced salary by, on average, 6-9 per cent, and introduced sabbaticals and early retirement."
Mr Roelandts said the firm would shortly locate several new business functions at its Dublin office, which was last year chosen as the company's new European headquarters.
These include an international technical support centre and a strategic marketing operation. Both will employ senior executives in Dublin and increase the value of the work carried out at the office.
"We have persevered with our strategic development plans in spite of difficult global market conditions," said Mr Roelandts. "Further growth of our advanced centre in Dublin will afford Xilinx major flexibility, capacity and presence throughout Europe as business conditions improve in the future."
Xilinx carries out some of the most advanced research and development activities that are undertaken in the Republic. Its engineers design programmable microchips that enable its customers to adapt microchips to suit their individual needs.
Xilinx engineers based in Dublin are among the first in the world to design chips that are manufactured on 300mm silicon wafers, the most advanced technology in the global industry. During the past quarter, 38 per cent of Xilinx's microprocessors were manufactured using this technology, said Mr Roelandts.
In a trading update yesterday, Xilinx said it expects fourth-quarter revenue to be at the high end of its estimated range of $285-$295 million (€262-€271 million), citing strength in Europe and Asia Pacific.
The firm expects revenues in North America to be unchanged from the third quarter. It forecast growth in Europe and Asia Pacific, and a drop in Japan. Xilinx stood by its forecast for gross margin of 59 per cent to 60 per cent.
Analysts on average expect Xilinx to report revenue of $291 million in the fourth quarter, according to Thomson First Call.
