Intel prepares to ship new generation computer chips from Kildare plants

Intel Ireland will soon begin shipping a new generation of computer chips from the Republic following an investment of €180 million over the past year. The decision to upgrade its two plants in Leixlip is a significant boost for the Republic at a time when Intel is cutting back on capital expenditure elsewhere.

Intel Ireland will ship flash memory chips, a core component in the new generation of mobile phones from its existing Irish plants Fab 10 and Fab 14.

These fabrication plants previously manufactured chips from Intel's hugely successful Pentium microprocessor family which are embedded in PCs. The decision to upgrade equipment at the Irish Fabs will enable the plants to manufacture memory chips for mobile phones, and reflects Intel's move into the communications sector.

Flash memory is a critical component for the latest mobile phones as it saves important data when a phone is turned off and allows digital "code" to be immediately available to the phone's processor on power-up.

Intel claims that more than 100 million mobile phones shipping from the world's leading manufacturers are enabled with its flash software solutions.

Last week, Intel also presented its latest communications chip, called the PXA800F, in the US. The chips are designed for mobile phones that allow for high-speed data transmission such as online games and videoconferencing.

Industry sources said the upgrade decision was a vote of confidence in Leixlip which may extend the lifetime of Intel's Fabs and so secure Irish jobs.

It is understood Intel Ireland has spent €180 million upgrading its existing plants in Leixlip, which employ 3,200 staff. This is despite Intel's recent decision to curb capital spending by about $1 billion (€0.93 million) during 2003, and its continuing €2.5 billion investment in its new Irish plant, Fab 24.

Intel's new flagship plant Fab 24, should begin production in mid-2004. About 500 Intel Ireland staff are already training in similar Fabs in the US which already use the latest 300mm semiconductor manufacturing technology.

This new 300mm process radically increases the efficiency in the chip manufacturing process.