Intel has raised concerns about the future of AI chipmaking in Ireland, urging the government to introduce a more competitive incentive program to attract and retain semiconductor manufacturers. A letter obtained by the Sunday Times, written by Intel’s Government Affairs leader Leonard Hobbs, was sent to former Minister for Public Expenditure Paschal Donohue, now Minister for Finance. In the letter, Hobbs highlighted that some Asian countries offer significantly larger incentives, ranging from €100 to €120 million from Ireland’s Industrial Development Agency (IDA).
Intel, which has invested over €30 billion in Ireland, including €14 billion in its Fab 34 fabrication unit in Leixlip, has expressed concern over its position in the evolving AI chip sector. Industry experts, including Newstalk Business Editor Joe Lynam, noted that Intel is lagging behind competitors like Nvidia, which dominates the AI chip market. This shift has led to speculation about Intel possibly being sold to other companies.
Despite Intel’s key role in Ireland’s economy, contributing €3.73 billion to GDP in 2023 and creating nearly 19,500 full-time jobs, the company’s future in Ireland appears uncertain in light of the rapid growth in the AI chipmaking sector.
Lynam suggested that Intel’s leadership in Leixlip is likely worried, as any significant changes could have major economic implications for Ireland.
