Feeds

New Intel Irish plants 'under threat'

Company considers position, report suggests

  • alert
  • submit to reddit

Boost IT visibility and business value

A report has suggested that the IDA's decision to withdraw €170m in grant aid for Intel could have more severe consequences than originally thought.

The Irish Times has reported that Intel Ireland has sought planning permission to build as many as three new factories in Leixlip, Co Kildare, where it already employs some 4,700 people at a massive microchip manufacturing complex. However, the recent decision by the IDA to withdraw some €170m in grant aid for Intel could influence the company's stance on the construction of two of the three new facilities.

On Wednesday, the IDA, the government development agency, said that it would hold back the cash after receiving signals from Brussels that the grant aid package for a new wafer fabrication facility called Fab 24-2 may not be allowed under EU rules. Though Intel said that it will still build the factory, it warned that it would now reconsider other potential investments in Ireland.

On Friday, it emerged in an Irish Times report that these other investments may consist of two more wafer fabrication plants in Leixlip, for which planning permission has already been sought. In total the two additional plans would have cost some €2.8bn to build, and are likely to have employed hundreds of people.

Interestingly, these plants were not declared publicly when the IDA and Intel jointly announced the Fab 24-2 investment in May 2004. But according to the Irish Times, one of the two new facilities was in fact covered by €170m in proposed grant aid from the IDA. While Intel said that it will still go ahead with Fab24-2, it is understood that the second and third plants many not get the green light, thanks in part to the EU's decision to block the IDA's proposed funding for Intel.

© ENN

Related story

Ireland withdraws grants for €1.6bn Intel fab

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.