New financial records reveal that Intel investment in Ireland received nearly all of its $384m in non-US grants and tax incentives from Irish taxpayers in 2023. The figures, disclosed in the tech giant’s annual report, highlight the extent to which foreign direct investment in Ireland benefits from state-backed incentives.
Intel reported $645m in grants and tax credits outside the US, with a majority linked to its major expansion in Leixlip, Co Kildare. The company confirmed that “substantially all” of these funds were sourced from Ireland.
Intel Investment in Ireland’s Chip Manufacturing
Intel’s €17bn expansion of its Kildare facility represents one of the largest private investments in Irish history. The Fab 34 plant in Leixlip is set to employ 1,600 additional staff when fully operational, increasing Intel’s total Irish workforce to 6,500.
A company spokesperson highlighted Intel’s €3.73bn contribution to the Irish economy in 2023, adding that R&D tax credits and grants enhance Ireland’s appeal for multinational corporations engaging in advanced research and technology.
Delays and Financial Setbacks
Despite the major financial backing from the Irish state, Intel has encountered delays at its Fab 34 facility, which may result in a €1bn penalty payment to investment giant Apollo.
Last year, Apollo acquired a 49% stake in an entity linked to Fab 34 for $11bn, enabling Intel to free up capital to reinvest in its business. However, delays in the project’s completion have triggered a potential $755m charge in Intel’s financial reports, with the company admitting to self-imposed constraints on near-term production capacity.
Intel has reassured stakeholders that manufacturing at Fab 34 is now underway, and it retains ownership of the facility under its agreement with Apollo.
Tech Sector Incentives Under Scrutiny
Intel’s reliance on Irish taxpayer-funded incentives reflects the intense global competition for investment in semiconductor manufacturing. In 2023, Technology Ireland, representing companies like Intel, Google, and Amazon, urged the Irish government to introduce a more competitive incentive programme to strengthen Ireland’s standing in the industry and secure long-term employment.
With semiconductor demand rising, countries worldwide are offering lucrative incentives to attract investment. As Intel grapples with declining revenues and increased competition from Nvidia and other rivals, Ireland’s continued support for its chip sector will be closely watched.
Intel’s fourth-quarter revenue fell by 7% to $14.3bn, marking a difficult year that also saw CEO Pat Gelsinger’s departure in December. The company reported a net loss of $126m for the quarter, bringing its annual losses to $18.8bn—a stark contrast to its $1.7bn profit in 2023.
With semiconductor investments shaping the future of global technology, Ireland’s role in Intel’s expansion underscores the country’s commitment to high-tech industry growth—but also raises questions about the long-term impact of such extensive taxpayer support.
