Leixlip plant in running for major Intel investment

Intel Ireland is believed to be under consideration for a potential multi-billion dollar expansion of its manufacturing facility in Leixlip. It is understood the facility is vying with four other Intel manufacturing operations worldwide.

In anticipation of possible further investment, Intel Ireland applied to Kildare County Council in March for planning permission for a 40,000 square metre expansion. The application is currently under consideration, and if approved, will bring Intel's potential expansion capacity in the Republic to 90,000 metres.

Intel currently covers 160,000 square metres at its Leixlip facility where around 4,500 people are permanently employed.

An Intel spokesman told The Irish Times yesterday he could not comment on the company's strategy in individual markets, but said: "Intel is always investigating expansion opportunities internationally. The semiconductor industry is growing very rapidly, and Intel always needs to be very flexible at the local level."

After the company recorded results last month which were ahead of target for the first quarter, Intel chief executive officer, Mr Craig Barrett, announced an increase in the firm's capital investment budget from $5 billion to $6 billion. This was based on an upward revision of demand for Intel products.

Intel is currently "pre-qualifying" each of its sites by obtaining permits and conducting regulatory reviews in all of its regions. A decision is expected before the end of the year.

Intel Ireland has already begun building a facility for the latest generation of computer chip based on .18 micron technology. Production is scheduled to begin during the third quarter, with the first products expected to be available by the fourth quarter.

A spokesman for the IDA said yesterday there were "no proposals on the table" for an Intel investment that would lead to any expansion in jobs beyond those that had already been announced.

Ireland is one of several possible sites under consideration. The others are in Israel, Arizona, Oregon and New Mexico, where Intel already has existing plants.

Recent media reports have said the Israeli government has already begun talks with Intel about the estimated $3.5 billion investment. However, the Israeli trade and industry ministry has told Intel its $400 million annual investment incentive budget cannot support such a big project.

If Leixlip was chosen for the multi-billion dollar investment it is not clear whether it will lead to a significant increase in jobs. When Intel builds new fabrication facilities, those dedicated to older technologies tend to close down production, and all of the employees gradually transfer to the new plant. However, by choosing Ireland as the location for its next generation of chip production, Intel employees will be employed in higher skilled activities.