Intel spends 5 billion euros to expand Irish factory, betting on demand for AI-driven chips
announced on Monday that it has launched a capital investment plan of 5 billion euros (about 5.7 billion U.S. dollars) to expand its manufacturing base at Leixlip Park outside Dublin, Ireland. The funds will be used to upgrade the existing facilities of the Fab 34 factory, install cutting-edge production equipment, and expand the automated wafer transfer system to expand the production capacity of Xeon 6 and next-generation Xeon server processors using Intel 3 process technology to meet the growing global demand for AI and high-performance computing. The head of Intel's foundry business said that the growth in server and AI demand is significantly increasing the demand for Intel 3 wafers. Unlike building new factories in the past, this investment is to upgrade equipment within the existing clean room space, which can convert demand into shipments faster. The project has begun, with most of the investment expected to be completed by the end of 2027, creating hundreds of new jobs and accounting for approximately 30% of Intel's $17 billion capital expenditure plan for 2026. The expansion is also part of Intel's strategy to regain its manufacturing leadership and advance its foundry business. In April this year, Intel spent $14.2 billion to repurchase 49% of the shares in the Fab 34 factory that was sold to Apollo Global Management in 2024, regaining full control of this key manufacturing asset. Since Intel entered Ireland in 1989, it has invested more than 30 billion euros and currently employs approximately 4,900 employees in the country. The Irish Prime Minister said the move was a strong affirmation of Ireland's status as an advanced manufacturing base.