Intel delivered a pre-election jobs boost for the Government yesterday by announcing a €1.6 billion investment that will create up to 400 jobs by 2006. The world's biggest semiconductor company said yesterday it would build a new factory at its Leixlip, Co Kildare, site that would use the latest computer chip technology, writes Jamie Smyth, Technology Reporter
The Tánaiste, Ms Harney, described the new Intel investment as a major coup for the Irish economy that confirmed Ireland's position as a world-class location for technology projects. IDA Ireland welcomed the decision by Intel and reiterated its view that this would be the best year for foreign direct investment in Ireland since 2000.
Intel Ireland beat off competition from other Intel sites in Israel and the US and some greenfield operations that Intel had considered for the investment.
Mr Jim O'Hara, general manager of Intel Ireland, said Intel Ireland's strong track record over the past decade and the stable environment in the Republic had helped it to win the investment.
Construction work on the new 60,000 sq ft facility will begin immediately at Intel's 150-acre Leixlip site and should be completed by 2006, he added. Intel's Irish operations will now employ 4,000 full-time staff and 1,000 contractors by 2006 at sites in Leixlip and Shannon.
The new €1.6 billion fabrication plant will manufacture computer chips - the silicon components which are the brains of electronic devices such as computers and mobile phones - using a brand new technology process. This process, which is not yet in full production at any other Intel facility worldwide, will enable the company's engineers to cram more transistors on to single chip.
The introduction of this 65-nanometre technology - a nanometre is a billionth of a metre - will enable Intel to dramatically increase its productivity and reduce its manufacturing costs.
About 300 Intel Ireland staff will travel to Oregon to learn about the new process technology.
The new investment by Intel will be supported by IDA Ireland, which declined to comment on the grants it will offer the firm. However, a similar Intel project called Fab 24, due to open next month, recently attracted Government grant aid worth more than €100 million.
Government grant aid for the project is subject to EU approval.
The new Intel plant, named Fab 24.2, will bring the US company's total investment in Ireland above €6 billion by 2006. The company will now have four separate manufacturing plants in Leixlip, producing a variety of chips for mobiles and computers.
Mr O'Hara said this variety would give the firm greater flexibility to manage its workforce.
The new €1.6 billion manufacturing investment follows other significant research and development projects announced by Intel over the past two years. Earlier this year it teamed up with Trinity College Dublin to set up a nanotechnology centre at the university, and in 2003 it established its own €12 million innovation centre in Leixlip. Last year it also invested €18 million at its Shannon research centre.
Intel said the timing of the jobs announcement, which comes just a few weeks before the local and European elections, was made purely for business reasons. "This was a hard-nosed business decision and had nothing to do with it (the elections)," an Intel spokeswoman said.
In April 2002 Intel announced a restart of construction work on its stalled Fab 24 plant just weeks before the general election.
This €2 billion plant is due to go into full production later this year.