US chipmaker Intel has announced a €5 billion investment to expand semiconductor manufacturing at its Leixlip facility west of Dublin, upgrading current production capacity and advancing research and development at the site. The investment strengthens Ireland's position within Europe's advanced semiconductor manufacturing ecosystem at a time of surging demand for AI-driven computing infrastructure.

As reported by the Financial Times, the announcement coincides with growing demand for AI data-centre chips, prompting semiconductor companies globally to increase manufacturing capacity. The EU's Chips Act, designed to boost European manufacturing and reduce reliance on foreign chip suppliers, provides the broader policy context for the investment.

Naga Chandrasekaran, executive vice-president at Intel, said the investment ensured "that Ireland remains at the forefront of the world's most advanced manufacturing ecosystems, while strengthening the region's role in the global technology landscape."

Taoiseach Micheál Martin described the announcement as "a powerful vote of confidence in Ireland, our skills base and our position at the heart of Europe's most advanced manufacturing ecosystem."

The Leixlip investment follows Intel's earlier announcement this year that it would pay more than $14 billion (€12.9 billion) to regain full control of its Fab-34 semiconductor plant in Ireland, two years after selling it to investment group Apollo for $11.2 billion (€10.3 billion) to shore up its finances. The company will raise more than $6 billion (€5.5 billion) in new debt to buy back Apollo's stake.

Intel's renewed commitment to Ireland contrasts with its decision last year to cancel a planned €30 billion factory in Magdeburg, Germany, and shelve a facility in Poland, as the company sought to optimise its manufacturing footprint and improve returns on invested capital.

The Irish government has since published a strategy aimed at attracting further semiconductor investment into the country, positioning Ireland as a primary destination for advanced chip manufacturing within the EU.

Intel's share price has more than doubled in the past six months amid a broader rally in semiconductor stocks. The company's Xeon server CPUs, which are among the products planned for manufacture at the expanded Leixlip facility, have seen strong demand growth as AI agent workloads increasingly require high-performance central processing units to co-ordinate complex tasks alongside graphics processors.