American company Intel announced the start of capital investments worth $5.7 billion in Ireland, as part of a plan to expand its production capabilities in Europe and meet the growing global demand for artificial intelligence (AI) chips and high-performance computing. This move reflects the ongoing competition among semiconductor companies to capitalize on the boom in the sector.

Meeting Global Demand for AI Technologies

The company stated that the new investments, equivalent to €5 billion, will be allocated to developing its industrial complex in Leixlip near Dublin, which produces Intel 3 silicon chips. These are described by the company as the most advanced of their kind in Europe.

Intel explained that the project aims to increase the factory’s production capacity, connect it with other factories within the industrial complex, support research and development activities, and retrain employees to keep up with new technologies.

The Executive Vice President of Intel Foundry, Nagesh Chandrasekaran, said that global demand for servers and AI technologies has led to an increased need for Intel 3 chips. This prompted the company to increase its investments in its European facilities.

He added that the new manufacturing equipment will contribute to producing Intel Xeon 6 processors and the next generation of Xeon processors based on Intel 3 manufacturing technology, which are targeted at data centers and AI-related applications.

The official indicated that the project will provide several hundred new job opportunities, joining the nearly 4,900 employees currently working for the company in Ireland.

Intel’s Investment Plan for 2026

According to Intel, most of the investments are scheduled to be completed by the end of 2027, accounting for about 30% of the company's total capital expenditure planned for 2026, which amounts to $17 billion.

Ireland is one of Intel’s most important manufacturing bases outside the United States. The company has invested around €30 billion since 1989 in Ireland, with more than half of this amount spent between 2019 and 2023 to expand chip fabrication facilities and double production capacity.

Irish Prime Minister Michael Martin considered that the new investments represent a strong message of confidence in the Irish economy and strengthen the country’s position as an advanced European center for semiconductor manufacturing and technological manufacturing.