Intel said today it is temporarily suspending construction of its $2 billion extension of its plant in Leixlip, Co Kildare.
Approximately 1,500 people are employed in the construction of the new facility called "FAB 24". This number will be cut to between 50 and 100 people from the end of this month.
When the FAB 24 extension was announced in June 2000, it was initially slated to start operations in late 2001 and create over 1,000 jobs. This date has now been pushed back to 2003.
However, due to the recent downturn in the technology sector, Intel has been forced to review the expansion.
Intel Ireland public affairs manager Mr Bill Riley told ireland.comthe company was still committed to the $2 billion investment but it will now be spread over a longer period.
"It is very disappointing to have to redeploy construction people at this time; however, we expect to be able to welcome many of them back to our Leixlip site in 2002," Mr Riley said.