Intel will invest €5bn to expand its Leixlip facility west of Dublin, boosting production of processors used in AI systems. The move comes as demand for AI data‑centre chips surges, prompting semiconductor companies to increase manufacturing capacity. The EU’s Chips Act aims to grow European chip manufacturing and reduce reliance on foreign suppliers. Intel’s executive vice‑president Naga Chandrasekaran said the investment will keep Ireland at the forefront of advanced manufacturing ecosystems. Irish Taoiseach Micheál Martin welcomed the investment as a vote of confidence in Ireland’s skills base and its role in Europe’s tech landscape.

Earlier this year Intel paid more than $14bn to regain full control of its Fab‑34 plant in Ireland, after selling it to Apollo for $11.2bn and raising $6bn in debt. The €5bn investment follows Intel’s 2022 decision to choose Germany for a new plant and the cancellation of a €30bn factory in Magdeburg. The Irish government has also unveiled a strategy to attract semiconductor investment.

Intel’s share price has doubled in the past six months amid a rally in semiconductor stocks. The company’s CPUs, especially Xeon server chips, are seeing booming sales as they complement Nvidia GPUs in AI workloads.