Intel promises to invest more than $5 billion in Ireland, Trump presses chip makers to switch to the

Intel launches a 5 billion euro upgrade of its Irish campus, adding hundreds of jobs

Intel (Nasdaq: INTC) announced on Monday that it has launched a 5 billion euro (approximately US$5.7 billion) upgrade to its Irish campus outside Dublin. The work is underway at the company's facility in Lexslip. Intel said it is the most advanced semiconductor manufacturing base in Europe.

This plant produces Intel 3 silicon wafers. The investment will connect the Lexlip plant to other plants on campus, boost research and development and fund employee retraining. Intel's executive vice president of foundry business, naga chandrasekaran, said the company's investment was driven by growing demand. [TAG

Intel entered Ireland in 1989. Since then, the company has invested € 30 billion cumulatively in the country. Most of this money was invested in a fab between 2019 and 2023, doubling its production capacity. Recently, Intel also bought back a 49% stake in the Fab 34 factory in Ireland that it previously sold to Apollo Global Management in 2024, marking renewed confidence in its Irish business.

The new manufacturing equipment currently being installed will support Intel Xeon 6 processors and next-generation Intel Xeon chips, all of which are produced using the Intel 3 process. Chandra Sekaran said the project would add "hundreds" of jobs to Intel's existing 4900 employees. Most of the spending will be completed by the end of 2027, accounting for approximately 30% of Intel's planned capital expenditure of $17 billion in 2026.

Irish Prime Minister Michelle Martin called the investment a strong vote of confidence in Ireland and its position as a base for advanced manufacturing.

Ireland is highly dependent on foreign-invested companies to provide employment and tax revenue

In the past decade, foreign-invested companies 'workforce in Ireland has almost doubled and now accounts for 11% of the country's entire labor market. Companies investing in Ireland often emphasize its skilled workforce and stable policy environment. But what is less mentioned is the country's low corporate tax rate-a topic officials tend to avoid in order to keep relations flowing in Brussels and Washington.

Whatever the reason, Ireland's investment results have been outstanding. The country's investment promotion agency, Investment Development Ireland, has just completed its best three-year cycle ever. In 2023, the agency promoted 248 investments, an increase of 2.5% over the previous year, and led to 19,000 jobs. In 2024, it won 234 projects involving 13,500 jobs. Last year, despite Trump's tariff threats making headlines, the agency set a record: 323 foreign investments expected to create 15,300 jobs, a 38% increase from 2024. About 65% of those deals are from the United States, and 78 are first-time investors.

This momentum continues into 2026. The latest semi-annual data from the Irish Investment Development Authority shows that a total of 190 investments were reached in the first six months, an increase of 6% over the same period in 2025.

Trump's pressure does not slow investment inflows

Trump's second term has put pressure on multinational companies to produce in the United States or face tariffs. Most EU imports are subject to a 15% tariff. U.S. Commerce Secretary Howard Lutnick has called Ireland's tax practices a "scam." However, the feared decline in investment has not occurred.

Peter Weil of Grant Thornton said Ireland's appeal goes beyond just taxation. "You could also say that even though the tax environment here has become less competitive, a U.S. group is still expanding its Irish operations or setting up new projects here, which just shows that Ireland means more than taxes." Housing shortages, high energy costs and grid capacity remain the biggest concerns for investors, but as long as the data remains positive, the Irish Investment Development Authority can put these issues on hold.

Back to the market, U.S. chip stocks were shaky in early July. The Philadelphia Semiconductor Index has fallen more than 11% since hitting an all-time high in June, but has still risen 83% over the year. According to data from Ruftt Lipper, in the week ending June 24, the outflow of funds tracking U.S. semiconductor stocks was approximately US$11 billion, setting a record for the largest weekly outflow this century. Analysts 'price targets remain high. Micron Technology (NASDAQ: MU) expects the largest gain among the S & P 500 chip stocks, more than 60%, while Nvidia expects a gain of more than 40%. Memory chip maker SK Hynix rose more than 10% on its first day of trading in the U.S. after completing a $26.5 billion stock sale.

Bank of America Securities predicts that global cloud and artificial intelligence infrastructure spending will reach nearly US$1.5 trillion by 2027, a year-on-year increase of 40% to 50%. Steve Sosnick, chief market analyst at Interactive Brokers, concluded: "We have never seen such extreme earnings growth. But the question is how long this growth can last."