New `chip' plant in Tallaght delayed

Plans for a new semi-conductor test and assembly plant in Tallaght have been put on hold because of the price collapse in the semi-conductor market.

The £70 million investment by the Japanese company Shinko microelectronics, a subsidiary of Fujitsu, was announced by the Tanaiste on her visit to Japan in February. It was scheduled to employ 440 people.

The plant, which was due to be completed by the end of next year, has now been put on hold. A final decision on whether it will go ahead is expected by next March. However, the company said yesterday that it was increasing employment at its existing plant in Tallaght where it has a 270-strong workforce. A spokeswoman said that 30-60 additional personnel would be recruited by the end of the year.

Mr Roger Murphy, personnel director at Shinko Microelectronics Ireland, attributed the decision not to proceed immediately with the new plant to adverse market conditions.

A spokesman for the IDA confirmed that a grant would be made available to Shinko Corporation if the company decided to go ahead with the project.