Intel announces €5.7 billion capital investment to expand its Leixlip, Ireland chip manufacturing campus for advanced AI chip production.
Intel announced a €5 billion ($5.7 billion) capital investment at its Leixlip campus in Ireland on Monday, targeting higher output of data center processors to meet growing demand for AI and high-performance computing. The program encompasses upgrades to fabrication facilities, new manufacturing equipment, and an expansion of the automated track system that links separate modules across the campus into a unified production environment. Research and development activities at the site will also be advanced.
The Leixlip campus produces Intel Xeon 6 processors and next-generation Intel Xeon chips built on Intel's Intel 3 manufacturing process. "The demand for servers, the demand for AI is driving a significant increase in the need for Intel 3 wafers," Naga Chandrasekaran, Intel's executive vice president and chief technology and operations officer, told Reuters. The investment is expected to add several hundred jobs to Intel's current workforce of 4,900 people in Ireland, with most funds to be deployed by the end of 2027—a figure that represents approximately 30% of the $17 billion Intel has allocated for capital expenditure across 2026.
Intel's presence in Ireland dates to 1989, and the company has invested more than €30 billion in the country, building its primary European manufacturing operations at Leixlip. Spending under the latest program began earlier this year.
The announcement reflects Intel's broader manufacturing expansion strategy. In the first quarter of 2026, the company reported revenue of $13.6 billion, up 7% year-over-year, driven by strength in its data center and foundry businesses. Intel Foundry revenue rose 16% to $5.4 billion that quarter, while the Data Center and AI unit generated $5.1 billion, a 22% year-over-year gain. Chief Financial Officer David Zinsner cited "unprecedented demand for silicon" and noted that Intel's supply could not keep pace with customer orders.
Ireland's government welcomed the announcement. Prime Minister Micheál Martin described it as "a powerful vote of confidence in Ireland" and affirmed the country's standing as a destination for cutting-edge semiconductor manufacturing. IDA Ireland Chief Executive Officer Michael Lohan highlighted the investment as a demonstration of the value of Ireland's skilled workforce and stable business environment. Intel also framed the investment as supporting European Union goals around technology sovereignty by contributing to a domestic supply of processors within Europe.