Intel $INTC 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 demand for AI and high-performance computing.
According to the company, 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. The program will also advance research and development activities at the site.
The Leixlip campus produces Intel Xeon 6 processors and next-generation Intel Xeon chips built on the company'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.
Chandrasekaran said the investment would add several hundred jobs to the 4,900 people Intel currently employs in Ireland. End-2027 is the target for deploying most of the funds, a figure that amounts to around 30% of the $17 billion Intel has penciled in for capital expenditure across 2026, Reuters reported.
Intel said spending under the program got underway earlier this year. Since arriving in Ireland in 1989 — where it now runs its primary European manufacturing operations — the company has poured more than €30 billion into the country and built a workforce of roughly 4,900 people at the Leixlip campus.
Monday's announcement is part of a broader push by Intel to rebuild its manufacturing standing. Intel reported first-quarter 2026 revenue of $13.6 billion, up 7% from a year earlier, 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 brought in $5.1 billion, a 22% year-over-year gain. Chief Financial Officer David Zinsner cited "unprecedented demand for silicon" and said Intel's supply could not keep pace with customer orders.
Ireland's government welcomed the announcement. Irish Prime Minister Micheál Martin said the announcement affirmed Ireland's standing as a destination for cutting-edge semiconductor manufacturing, describing it as "a powerful vote of confidence in Ireland." IDA Ireland Chief Executive Officer Michael Lohan said the investment demonstrated the value of Ireland's skilled workforce and stable business environment, the company said.
Intel said the investment also supports European Union goals around technology sovereignty by contributing to a domestic supply of processors within Europe.