Intel to produce next-gen chips in Ireland

Intel is expanding its plant in Leixlip, Co Kildare so that it can produce its future generation of chips.

According to the local press, the move secures the future of hundreds of jobs at the Leixlip plant and is likely to lead to the creation of thousands of temporary construction jobs when investment takes place.

Intel announced a $500 million upgrade of its Fab 14 plant in anticipation of a new production line being installed there, but there were fears the expansion project would not go ahead.

Israel had been competing with Ireland to get the extra Intel work. Both governments had been plying Chipzilla with sweeteners until they had diabetes scares.

Two weeks ago, Intel President, Paul Ottelini, told investors in California that Ireland, along with Arizona and Oregon, would be one of three new manufacturing bases for next generation 14 nanometer chips, or their successors.

Intel Ireland has since confirmed that Ireland is now on the parent company’s “roadmap” for the production of future generations of chips.

It is a turn around for Intel which has not invested in producing a new technology in Leixlip since 2004, and it is expected to cost €1 billion  to set up. It will take two years to build.