Intel invests 5 billion euros to expand its factory in Ireland, betting on AI-driven chip demand

Intel announced on Monday that it has launched a capital investment plan worth €5 billion (approximately $5.7 billion) to expand its manufacturing base at the Leixlip campus in Dublin, Ireland. The funds will be used to upgrade existing facilities at Fab 34, install cutting-edge production equipment, and expand the automated wafer transfer system to increase the capacity for the Xeon 6 and next-generation Xeon server processors using Intel 3 process technology, in order to meet the growing global demand for AI and high-performance computing.

The head of Intel's foundry business stated that the growth in server and AI demand is significantly increasing the demand for Intel 3 wafers. Unlike past new factory constructions, this investment involves upgrading equipment within existing cleanroom space, allowing for a quicker conversion of demand into shipments. The project has already begun, with most of the investment expected to be completed by the end of 2027, creating hundreds of new jobs and accounting for about 30% of Intel's $17 billion capital expenditure plan for 2026.

This expansion is also part of Intel's strategy to regain its manufacturing leadership and advance its foundry business. In April of this year, Intel repurchased 49% of the Fab 34 factory, which was sold to Apollo Global Management in 2024, for $14.2 billion, regaining full control of this key manufacturing asset. Since entering Ireland in 1989, Intel has invested over €30 billion and currently employs approximately 4,900 people in the country. The Prime Minister of Ireland described this move as a strong affirmation of Ireland's position as an advanced manufacturing base