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Galway set to miss out on thousands of jobs as Intel tipped to pick Germany for major new chip plant

A site in Oranmore had been short-listed by Intel as one of 10 possible locations for the new plant, which will create up to 10,000 new jobs.


Intel has reportedly picked Germany for its major new plant investment

Intel has reportedly picked Germany for its major new plant investment

Intel has reportedly picked Germany for its major new plant investment

Galway looks set to miss out on a major Intel project worth thousands of jobs and billions in investment.

The semiconductor giant has reportedly chosen Germany for its next landmark chip factory.

The IDA had selected a former Defence Forces firing range in Oranmore as a ‘preferred site’ for the new chip fabrication facility, which is likely to employ up to 10,000 people.

It’s the second time that Galway has missed out on a major investment from a tech giant. Planning delays caused Apple to ditch its plans for a major data centre in Athenry two years ago.

Intel employs almost 5,000 people in Ireland at present, mainly at its Leixlip plant.

However, the new Intel production facility, which is being built to allow sectors such as car manufacturers design and build their own chips, would have attracted an investment budget of over €10bn with 10,000 direct jobs created and support for thousands more jobs.

In September, Intel CEO Pat Gelsinger said that Ireland was one of 10 short-listed countries for the new investment facility.

“We have gotten nominations for sites from across European countries, some 70 different sites,” Mr Gelsinger told RTE at the time.

“We are down to about ten finalists now that have sort of met the bar and Ireland is clearly one of those.”

However, the size of the German market and recruitment pool, together with less pressure on utilities such as housing and public transport, may have swung the decision in favour of Germany.

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A spokesperson for Intel Ireland said that no decision has yet been made.

“Intel executives are having constructive investment conversations with government leaders in multiple EU countries,” she said. “We are encouraged by the many possibilities to support the EU’s digital agenda and 2030 semiconductor ambitions. While current negotiations are ongoing and confidential, we plan to make an announcement as soon as possible.”

According to Bloomberg, the semiconductor fabrication plant will likely be built in Saxony, with German regions of Saxony-Anhalt and Bavaria also in the running for the new factory.

Intel is budgeting as much as €23bn for new plants and equipment in 2022, up from roughly €14bn this year.


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