Has Ireland's Intel loss turned out to be its gain?
Germany
was announced as one of the locations for
Intel's
newest chip plants in Europe, it was seen as a blow to
Ireland's
ambitions.
The Republic had been a close second, then chief executive Pat Gelsinger said, but other areas and their officials had been more 'aggressive' in winning over the chip maker for a bigger slice of the planned $33 billion (€28 billion) investment in European chip facilities.
As a sort of consolation prize, Ireland would get Fab 34, a multi-billion-dollar investment that would make sure the Leixlip plant would be manufacturing next generation chips. But it would be without its general manager, Eamonn Sinnott, who subsequently
was appointed to oversee the Magdeburg project
on an interim basis.
While the politicians were eager to highlight the positives of the situation – $12 billion isn't to be sniffed at, after all – there was much criticism about the loss of the new plant. It was a 'tragedy' for the State. There were accusations of the Government and IDA Ireland 'snatching defeat' from victory. Ireland had failed, for various reasons, to bag the big prize, and we grudgingly had to make the most of the $12 billon in scraps that we were being tossed.
READ MORE
Three years on, would the critics be quite as vocal? Although German ministers and Intel executive shook hands almost two years ago on an expanded €30 billion investment In Intel's operations in the country, things have not progressed as planned. Despite heavy subsidies from the German state, the project was paused in 2023, leaving the new plant in limbo.
There was worse to come. This week, new chief executive Lip-Bu Tan said the planned factories in Europe would no longer be going ahead.
[
Intel slides after CEO struggles to show turnaround on track
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]
In the meantime, Fab 34 in Leixlip has opened, and shipped its first chips in January 2024. Although the wider Irish operation is currently
facing the loss of up to 200 jobs
– and there could be more, given Mr Tan's announcement this week – the Fab 34 investment and its importance to Intel's current plans is thought to have largely insulated the Irish workforce from the most severe cuts.
Ireland's loss, as it turns out, may actually have been its gain.
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