Intel’s five billion-euro investment in its Co Kildare campus is not an “outlier” in the tech industry, the Taoiseach has said.
Micheál Martin was speaking to the media at the chip maker’s Leixlip facility as the company announced its capital investment project.
Intel says the global demand for AI has fuelled the need to expand its production of processors and chips.
It says the investment will also advance research and development and help strengthen Europe’s semiconductor supply.
Mr Martin was asked by reporters if the cost of doing business in Ireland could deter other potential investments.
He said it was “correct” to point out there are challenges in Ireland and that the Government is “very, very aware” of the issues.
He continued that they need to “do better” on energy costs, which he said have been “exacerbated” by the wars in Ukraine and the Middle East.
A research and development corporation tax credit measure, introduced last year, has been “significant in enhancing” Ireland’s competitiveness, he said.
Mr Martin was questioned about his confidence in the tech sector following recent redundancies at other multinational corporations.
“This sector is growing in Ireland,” he responded, describing it as “a huge sector” consisting of around 130 companies who employ “well over” 30,000 people.
“Other companies have made announcements as well in this sector recently,” he said, “so it’s not an outlier.”
He added specialised construction industries in Ireland catering to the high-tech sector also contribute to attracting foreign investment to the country.
He said: “They know our ecosystem will enable us to get it done and get it delivered in a very reliable and high-spec way.”
“That, in its own way, then reinforces decisions like this that companies feel more confident in making, that they can get the project delivered on time and effectively.”
Mr Martin did warn that there will be “some changes in respect of AI”, but said Ireland could also benefit from increased investment in AI sectors in Ireland.
“Because of our skills base we will benefit too from AI investments, but there will also be impacts from AI on other sectors,” he said.
Enterprise Minister Peter Burke, who was at the event, pointed to investments made by Qualcomm Technologies in Cork and Openchip and Rippling in Dublin as a sign of strength in the sector.
He added that last year, Ireland’s foreign direct investment agency, IDA Ireland, “had a record year, 323 investments, a lot of new name investments in Ireland too, which is very important”.
While Intel has said the project will generate employment during its construction and equipment installation, and full-time high-tech jobs, no numbers have been put forward of how many roles will be created.
Asked about the matter Mr Burke said the company is in “a strong growth phase” and that numbers will be available “shortly”.
He said “concerns” about job cuts at the company in recent years have now “completely gone”.
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