Despite High Location Costs Intel Invests an Additional Five Billion Euros ($5.4 Billion) in Irish Chip Factory

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Intel is expanding production at its Leixlip site. Additional capacities are to be created, and several hundred new jobs will be added by the end of 2027.

The U.S. chip manufacturer Intel is investing five billion euros in its Irish production site in Leixlip near Dublin. With the program, the company aims to expand the production of server processors and respond to the growing demand for computing power for artificial intelligence and high-performance computers. According to the company, the work began at the start of 2026. Most of the funds are expected to be utilized by the end of 2027.

Planned are modernizations of existing production facilities as well as the installation of new production and lithography systems. Intel does not intend to build an additional factory but to better utilize the existing cleanrooms. Additionally, an automated transport system connecting different areas of the campus will be expanded. Research, development, and employee training are also part of the program.

Focus on Intel 3 and Xeon Processors

The focus of the investment is the Intel 3 manufacturing process. Components for the Xeon 6 server processor series, as well as for the next Xeon generation, are being produced in Leixlip. These chips are used in data centers worldwide. Intel anticipates an increasing demand for corresponding silicon wafers, particularly due to the expansion of AI applications.

A key focus is the Fab 34 factory, which opened in 2023 and operates with extreme ultraviolet lithography. This technology enables particularly small and precise structures to be transferred onto silicon wafers. While Intel 3 is not the company's newest manufacturing process, it continues to play an important role in server chips as well as in input and output components and foundational elements of future processors.

Intel also views the expansion as a contribution to European supply security. The additional production is intended to reduce Europe's dependency on semiconductor imports and make supply chains more resilient. According to the company, Leixlip is the only Intel location where the Intel 3 process is currently being used on a large scale.

Several Hundred Additional Jobs

The investment is expected to create several hundred highly qualified jobs. Additionally, according to the company, thousands of temporary positions in the construction industry and related trades will be generated. Currently, Intel employs approximately 4,900 people in Ireland. The site is also the company's most important European production base.

Intel has been present in Ireland since 1989 and has invested more than 30 billion euros there to date. The newly announced five billion euros represent around 30 percent of the company’s planned global capital expenditures for 2026. The project is proceeding despite ongoing losses in the manufacturing division Intel Foundry, which recorded an operating loss of more than 2.4 billion US dollars in the first quarter of 2026.

Ireland's Prime Minister Micheál Martin described the investment as a strong vote of confidence in the business location and its skilled workforce. Despite high electricity prices and increased construction costs, Intel remains committed to Leixlip. The site is a central part of the global production network, explained technology and production chief Naga Chandrasekaran.