Wednesday, May 22, 2024

Government may provide support to Intel for new plant

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The Minister for Finance Michael McGrath has hinted that the Government could provide financial support to micro-chip giant Intel amid reports that the company is to set up a new plant in Ireland.

The Wall Street Journal has reported that Intel was in advanced negotiations with Apollo Global Management, a US asset management company, for funding worth more than $11 billion to help it build a new plant in Ireland.

Speaking in Brussels today, Mr McGrath said: “We don’t have anything that we can say publicly at this point in time. Intel is involved in its own private commercial negotiations”.

“But the Irish Government has been kept abreast of developments and Intel is a very important partner of IDA Ireland and the Irish Government,” he added.

He said there had been “a number of discussions” with the company in recent months in relation to their development plans and how they would be funded, including through private sector investment “and also what support the Irish Government can provide, through IDA Ireland”.

The Minister said Ireland had a well established research and development tax credit system.

“We’re very anxious to support companies like Intel who are indispensable to the economic success of our country and it has a very close working relationship [with us], and so discussions take place on an ongoing basis between the government, IDA Ireland and Intel in relation to their future development plans,” he stated.

The WST report comes as Intel looks to expand its presence across the US with a planned $100-billion spending spree across four states, to boost its manufacturing business and catch up with chipmaking rival TSMC.

Intel announced plans in 2022 to build chip factories in Ireland and France as it seeks to benefit from easier European Commission funding rules and subsidies.

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