Intel Unveils €5 Billion Investment Plan to Expand AI Chip Manufacturing in Europe

Intel has officially announced a €5 billion investment commitment for its manufacturing campus in Leixlip, Ireland. The company says that the investment will help it expand production capacity for Intel Xeon processors as demand for AI infrastructure continues to rapidly increase worldwide.

Intel doubles down on Europe with new AI manufacturing push

Rather than building a brand-new fabrication plant, Intel will modernize and expand its existing Leixlip campus by installing advanced manufacturing equipment and upgrading current fabrication facilities. The company said the project, which began earlier this year, will also expand its automated track system to connect different production modules into a faster, more efficient manufacturing environment.

Intel will focus on increasing output of Intel Xeon 6 processors and next-generation Xeon chips built on Intel’s Intel 3 process technology. Those processors are expected to power AI factories, enterprise servers, and high-performance computing workloads as businesses continue ramping up AI deployments.

Intel says the expansion will create additional permanent high-tech positions while generating work for specialised construction and equipment installation crews throughout the project. The company has invested more than €30 billion in Ireland since opening the Leixlip campus in 1989, with the facility now employing around 4,900 people and serving as one of Intel’s most advanced manufacturing sites.

Intel Foundry Chief Technology and Operations Officer Naga Chandrasekaran said the investment reflects the company’s commitment to maximizing manufacturing capacity for foundry customers while keeping Ireland at the forefront of advanced semiconductor production.

“This €5 billion investment represents a definitive commitment to maximize capacity at our Leixlip campus and increase what we can deliver to Intel Foundry customers. By investing in our existing fabs with state-of-the-art technology and installing cutting-edge tools, we are not just increasing output of critical products like Xeon 6 and next gen Intel Xeon processors built on Intel 3, we are ensuring that Ireland remains at the forefront of the world’s most advanced manufacturing ecosystems, while strengthening the region’s role in the global technology landscape.”

While construction is already underway, Intel noted that execution timelines, manufacturing output, and capacity expansion remain subject to market conditions, equipment availability, and broader economic factors.