Intel has sought planning permission to build two new computer chip plants in Leixlip at cost of around €2.8 billion. The plants are in addition to the Fab 24-2 plant that is at the centre of the Government's dispute with the European Commission over State aid that surfaced this week.

Although it was not announced publicly by IDA Ireland, one the new fabrication plants covered by the planning permission was included along with the Fab 24-2 project in the Government's notification to the European Commission of an €170 million state aid package for the US chip maker.

Intel has committed to Fab 24-2, but the plan for a second and third plants are now under review in light of the Government's failure to persuade the commission to sanction the grant aid.

An Intel spokeswoman said last night no decision on whether to go ahead with the two new projects had been made by the company. All new Intel projects would be reviewed in light of the decision on grant aid earlier this week, she added.

The Government withdrew its application for approval for €170 million grant aid to support Fab 24-2 and the second plant this week when it encountered opposition from the commission.

Yesterday it continued to criticise the commission for its negative position on the aid proposal, accusing it of damaging innovation within the European Union.

The Minister of State at the Department of the Taoiseach, Tom Kitt, said he was bitterly disappointed by the commission's decision. He said the decision would probably have negative consequences on how Irish people viewed the EU in the run-up to a referendum on the new constitution later this year.

"I certainly think that the commission should be considering the consequences of their action in this matter," said Mr Kitt, who is the minister responsible for e-government and technology.

IDA Ireland refused to comment yesterday on why it had notified the commission about an Intel project that it or the firm had not announced publicly.

Up until now the Government has only announced that Intel has agreed to build a €1.6 billion plant in Leixlip called Fab 24-2.

However, it is understood that Intel and the Government agreed to add the second plant to the Fab24-2 application to the EU for State aid approval in order to give the firm more flexibility when it decided to go ahead with the project.

The planned second computer chip fabrication plant would sit beside Fab 24-2 on Intel's Leixlip site and would cost about €1.4 billion to build, according to the notification to the commission.

The planning application submitted recently by Intel shows the firm also wants permission to build a third plant to similar specifications. It would be 5,574sq m (60,000sq ft) and probably cost another €1.4 billion to build.

The planning application also seeks permission for Intel to be able to combine these two plants into one big 12,263sq m (132,000 sq ft) factory if it feels this is a better option .