Ireland has lost out on Intel's plans for two new semiconductor manufacturing facilities in Europe, though the company has pledged ongoing investment of €12bn at its Leixlip facility.
Intel said it will double the manufacturing space in Leixlip to bring Intel 4 process technology to Europe and expand foundry services.
Intel has selected Magdeburg for its new semiconductor sites, and the company is also creating a new R&D and Design hub in France.
In the initial phase, Intel plans to develop two first-of-their-kind semiconductor fabs in Magdeburg, the capital of Saxony-Anhalt.
The company said planning will start immediately, with construction expected to begin in the first half of 2023 and production planned to come online in 2027, pending European Commission approval.
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Intel said the new fabs are expected to deliver chips using Intel’s most advanced, Angstrom-era transistor technologies, serving the needs of both foundry customers and Intel for Europe and globally as part of the company’s integrated device manufacturer 2.0 strategy.
Intel described Germany as the ideal place to establish a new hub, describing the country as a ‘Silicon Junction’ for advanced chipmaking.
The company said it plans to initially invest €17bn at Magdeburg, creating 7,000 construction jobs over the course of the build, 3,000 permanent high-tech jobs at Intel, and tens of thousands of additional jobs across suppliers and partners.
Speaking in Washington DC, Taoiseach Micheál Martin commented: "I spoke with Pat Gelsinger, CEO of Intel, about its pan-European plans, which include substantive continued investment in Ireland. This announcement firmly underlines the importance of Intel’s operations here for their future plans and the company’s deep and ongoing commitment to Ireland.
"This very significant show of confidence, in Ireland and in our talented and skilled workforce, is a strong endorsement of our offering to investors."
Eamonn Sinnott, Intel Ireland general manager said: "The level of investment announced today is the strongest possible evidence of Intel’s deep commitment to Ireland and demonstrates that Ireland is a very competitive location for leading edge investments such as these and will be into the future."
IDA Ireland chief executive Martin Shanahan added: "The scale of the future investment in Ireland announced today by Intel is remarkable. The further €12bn investment will have a profound impact on the Irish economy in the coming years.
"Intel’s campus in Leixlip is home to one of the largest industrial construction projects in Europe, and will house some of the most complex manufacturing facilities in the world. Once the facility is operational, employment in Intel Ireland will stand at 6,500."
Intel also announced plans to build a €100bn chip-making complex in the US which has the potential to be the biggest in the world.
