U.S. chipmaker Intel said on the 13th (local time) that it will invest €5 billion (about 8.48 trillion won) in its Fab 34 semiconductor plant in Leixlip, Ireland.
Intel said it plans to modernize Fab 34 and expand production capacity through this investment while also strengthening research and development (R&D) capabilities.
Fab 34 is a plant that Intel sold a 49% equity stake in to alternative investment firm Apollo Global Management in 2024 to improve its financial structure, then bought back this year at a premium.
Intel Vice President Naga Chandrasekaran said, "This investment will help establish Ireland as a center of a world-class advanced semiconductor manufacturing ecosystem," adding, "Ireland's role in the global technology industry will also be further strengthened."
Fab 34 is the only plant in Europe that mass-produces advanced semiconductors using extreme ultraviolet (EUV) lithography equipment.
Ireland Prime Minister Micheál Martin also said, "This investment is an example that shows strong confidence in Ireland's technological prowess and its top-tier manufacturing ecosystem in Europe."
The European Union (EU) is pursuing policies to reduce dependence on semiconductor supply chains concentrated in Asia, including Korea and Taiwan, through measures such as the Chips Act. Fab 34 is regarded as a key base for advanced semiconductor production in Europe.
To secure liquidity in 2024, Intel sold 49% of Fab 34's equity to Apollo for $11.2 billion and bought it back this year for $14.2 billion. It also plans to raise more than $6 billion in new liability for the acquisition.
Intel's share price has more than doubled over the past six months on the back of strength in the semiconductor sector.
The Financial Times (FT) in the United Kingdom said Intel, which owns its own production facilities, is securing a competitive edge as computing demand from artificial intelligence (AI) corporations surges.
Intel Chief Executive Officer (CEO) Rubbu Tan said at an earnings release in April, "As the AI market shifts from foundation model-centric to inference- and AI agent-centric, demand is rising sharply not only for Intel's CPUs but also for wafer and advanced packaging services."