Intel Invests 8.5 Trillion Won in Ireland Fab to Strengthen European Production Hub

Intel Repurchases Stake at a Premium This Year after Selling Due to Funding Shortages

On July 13 (local time), U.S. semiconductor company Intel announced that it will invest 5 billion euros (approximately 8.48 trillion won) in its Fab 34 semiconductor factory in Leixlip, Ireland.

Fab 34 is the only advanced semiconductor factory in all of Europe that utilizes extreme ultraviolet (EUV) lithography equipment for mass production. Since establishing its facility in Ireland in 1989, Intel has invested more than 30 billion euros and currently employs 4,900 staff members.

Aerial view of Intel's Fab 34 semiconductor plant in Leixlip, Ireland. Intel official website

Two years ago, Intel sold a 49% stake in the factory to alternative asset manager Apollo Global Management due to funding shortages, but this year it repurchased the stake at a premium. With this new investment, Intel plans to modernize Fab 34, increase production output, and strengthen research and development.

Intel Vice President Naga Chandrasekaran stated, “This investment will ensure that Ireland remains at the forefront of the world’s most advanced manufacturing ecosystems, further strengthening the region’s role in the global technology landscape.”

The European Union is making efforts, such as establishing the European Chips Act, to reduce its reliance on semiconductor supply chains concentrated in Asia, including Korea and Taiwan.

Intel is considered to be in an advantageous position due to the surge in computing power demand from artificial intelligence (AI) companies. CEO Pat Gelsinger previously said in the company’s April earnings statement, “As the AI trend shifts from foundation models to inference and agent-centric workloads, demand is rapidly increasing not only for Intel’s CPUs, but also for wafers and advanced packaging services.”

This content was produced with the assistance of AI translation services.