Intel to make another major investment in Ireland?

darkman2

Intel seen picking Ireland over Israel for upgrade

The Israeli government gave the company's $600 million grant application for a new generation fab the cold shoulder.

Yuval Azoulai and Shmulik Shelah



Intel Corporation (Nasdaq: INTC) has picked Ireland over Israel as the site for its next generation fab. Sources inform ''Globes'' that Intel is leaning towards Ireland for the upgrade of a fab to production of 15-nanometer technology wafers, which will replace the current 22-nanometer technology wafers made at the company's Fab 28 in Kiryat Gat.

In June, Intel Israel asked the Investment Promotion Center for a $600 million grant to upgrade and expand Fab-28. Intel said that the project would create its most advanced fab in the world, and that the company would invest $4.8 billion of its own money in it. In exchange, Intel promised to hire 1,300 more workers.


*wow if that comes to Ireland!!!

This was Intel's fourth grant application since the mid-1990s. The previous grant, in 2000, totaled $200 million. Intel has invested $2.7 billion in the Kiryat Gat fab.

Intel's grant application was given the cold shoulder by the Ministry of Finance and the Ministry of Industry, Trade and Labor, because of the frequency of the applications for its fabs. Government sources told "Globes" at the time that the government should review its grants policy, and that if it was prepared lay on the table another a huge grant for Intel, it should open it up to a tender among other multinationals in exchange for investing heavily in Israel.

One source said, "Intel has gone as far as it can go at Kiryat Gat, and if the company wants to develop its operations in Israel, it should do so in other locations, such as in the north or in an Arab town."

In July, the Ministry of Finance and the Ministry of Industry made a counteroffer to Intel Israel: in exchange for new investment in Kiryat Gat, it would receive a relatively meager NIS 1 billion grant, of which NIS 700 million would be used to set up operations in Beit She'an, and the rest for upgrading Fab 28. The idea of setting up shop in Beit She'an was intended to create jobs there.

Intel Israel thoroughly reviewed the proposal, and general manager Maxine Fassberg and other executives toured the proposed site, including its water and electricity infrastructures and access roads.

A senior government source involved in the talks with Intel told "Globes" today that the company decided to upgrade its Irish fab instead. "Intel will only officially announce its decision at the end of the year, but we understand from the spirit of the talks that it's going to Ireland."

The sources made it clear that, despite Intel's decision to upgrade its Irish fab, the ideal of building an assembly plant in Beit She'an is still on the agenda, and that the Investment Center never linked it with the proposal to expand the Kiryat Gat fab. "On the contrary," said a source, "From what we've heard in recent weeks from the company, it is very interested in this option, and it strongly wishes to move forward in negotiations on an agreement for possible future operations in Beit She'an."


Published by Globes [online]

Did they not already announce a new €500m upgrade in Liexlip? Looks like they may get something much bigger. Fantastic news if true. Good news for once.

Dotsie~tmp

When I heard about the contractor layoffs at FAB14 I thought that was it, no new chips and they would taper off and pull out. Question is do we have €600mln to inject into a new FAB in leixlip?

galwayrush

Are they looking for a 600 million dollar grant?
They would need to be providing many thousands of jobs for an investment like that.

cml387

"One source said, "Intel has gone as far as it can go at Kiryat Gat, and if the company wants to develop its operations in Israel, it should do so in other locations, such as in the north or in an Arab town."

That's an interesting quote.

darkman2

galwayrush wrote: »

Are they looking for a 600 million dollar grant?
They would need to be providing many thousands of jobs for an investment like that.

But in the article it states that the Isreali's believe that decision is already made and an announcement before the end of the year. It may not happen but it looks good if that's the case.

4leto

This is great news, I really feel Ireland has turned a corner now, with the growth figures released during the week and people around me seem less afraid.

This is good.

darkman2

Apparently, Intel has gone as far as it can at its Kiryat Gat, and if the company wants to stay in Israel it would have to go north or move to an "Arab town."
In July, the Ministry of Finance and the Ministry of Industry offered Chipzilla a small grant if it set up operations in Beit She'a.
Intel decided to upgrade its Irish fab instead. Apparently, the plan is to announce the development around Christmas. It looks like the Irish were more forthcoming with the money. Besides the new fab would bring 1,000 jobs to a country which is not doing very well at this point.

Read more: http://news.techeye.net/chips/intel-looks-to-ireland-over-israel#ixzz1Z0d8J5BM

General General

Things that work against Ireland; MMG might get elected, pull a Chavez & nationalise everything...

Things that work for Ireland; we're not shooting & blowing up starving seven year old children on a daily basis...

TheyKnowMyIP

I welcome further private investment. At least Intel ain't bound by the red tape seen in Government.

darkman2

More from Globes on this

It is worth paying attention to the Irish fabs. The last time that Intel invested in a new Irish fab was in 2004, when it built a campus at Leixlip, which was Intel's most advanced fab at the time, producing wafers with 65 nanometer technology. Intel built its next state-of-the-art fab - 45 nanometer technology - in Israel, and it is now upgrading its Kiryat Gat Fab 28 to 22 nanometer technology.
Citi Capital Markets believes that Intel's actions on its Irish fabs means that the company will carry out the next upgrade to 15 or 10 nanometer technology, scheduled in 2013, in Ireland. Intel plans to invest $5 billion in the procurement of equipment for state-of-the-art production lines for the new fabs.

AlmightyCushion

I remember reading not too long ago that Intel Ireland had managed to get €500m dedicated to it for upgrades so it seems Intel are interested in their investment here and lends some credibility to the article. If we do get the 15nm or 10nm upgrade it will be great news for Ireland.

Zebra3

General General wrote: »

Things that work against Ireland; MMG might get elected, pull a Chavez & nationalise everything...

You should find out more about the presidential role in Ireland. :rolleyes:

harmoniums

AlmightyCushion wrote: »

I remember reading not too long ago that Intel Ireland had managed to get €500m dedicated to it for upgrades so it seems Intel are interested in their investment here and lends some credibility to the article. If we do get the 15nm or 10nm upgrade it will be great news for Ireland.

Jesus 10nM!
I just qual'ed the TSMC 28nM process, these things are a dog to dial in.

Overheal

harmoniums wrote: »

Jesus 10nM!
I just qual'ed the TSMC 28nM process, these things are a dog to dial in.

roll on picometer.

Not a fan of Intel myself. Expecting Grants (not loans), and in the past bribing it's clientele (Dell, HP, etc) with millions in kickbacks for them not to sell AMD-based computers. I don't buy from people that need money to pay off their bribes to compete with other companies that are trying to make an honest dollar/euro.

Jake Rugby Walrus666

Zebra3 wrote: »

You should find out more about the presidential role in Ireland. :rolleyes:

Yes but what if he pulls a chavez. There's nothing in the constitution about that

Reckless Abandonment

I wouldn’t hold your breath lads, the last “big investment” has been put on hold, Intel are letting go most of the construction works all ready.
I work in Leixlip and see it first hand,
Another 200 constuction workers going this week

tallus

Reckless Abandonment wrote: »

I wouldn’t hold your breath lads, the last “big investment” has been put on hold, Intel are letting go most of the construction works all ready.
I work in Leixlip and see it first hand,
Another 200 constuction workers going this week

Heard that last night myself, one of the guys laid off is a neighbour of mine.

Irish Slaves for Europe

doesn't metro north cost 600 million and it would create 4,000 construction jobs and 14,000 permanent jobs once its complete, I'd buy that instead, although in an ideal world we could have both

nizo888

4leto wrote: »

This is great news, I really feel Ireland has turned a corner now, with the growth figures released during the week and people around me seem less afraid.

This is good.

Lenny, is that you from beyond the grave?! :eek:

Zebra3

Jake Rugby Walrus666 wrote: »

Yes but what if he pulls a chavez. There's nothing in the constitution about that

Do you have any idea what you're talking about?

"Pulling a Chavez"?

Being elected by the people?

Surviving a CIA backed coup?

Jimoslimos

So this is basically a multi-billion dollar company dangling a carrot in front of two donkeys (Ireland and Israel).

Thread title should read:
Ireland to make another major investment in Intel

Solnskaya

With MMC's like Intel et al, Govt's are basically buying jobs, and when they stop buying, the MMc moves on to the next sucker buyer. It's a bit like paying your mate to employ your child. Maybe it would be better if your child actually got a real job. MMC's are in for a good time, not a long time and when the tax breaks and "grants" run out, they just move on to another lower cost economy willing to buy their people jobs. MMC employment is a bit of a mirage, as anyone who has every worked in one can attest- there is not a whole lot of fiscal reality involved, it's all grants this, tax breaks that, spend it all on capital items, when the gravy train stops, pack up the gear and pitch a new tent somwhere else. The MMC wins, every time. BTW, it's the IDA giving out the money, and they are basically clowns.

galwayrush

Say for eg, 2000 jobs created, IDA invest 500 million, that's 250 K per job. How long ( if ever) would such an investment by our tax payers pay off?

cosanostra

galwayrush wrote: »

Say for eg, 2000 jobs created, IDA invest 500 million, that's 250 K per job. How long ( if ever) would such an investment by our tax payers pay off?

Yet a small business that starts a couple of people will be lucky to get anything

galwayrush

cosanostra wrote: »

Yet a small business that starts a couple of people will be lucky to get anything

A date in court with the revenue people is the best we can hope for from the state....

galwayrush

I , like many other self employed people could offer better returns for the Government, say, give us a measely 50 K for each job created.

Son Of A Vidic

Great news for a change if it goes ahead. I just hope Mossad doesn't start murdering key players for Intel in Ireland. Of course they'll probably use some stolen Irish passports, which they are quite fond of.

newmug

Reckless Abandonment wrote: »

I wouldn’t hold your breath lads, the last “big investment” has been put on hold, Intel are letting go most of the construction works all ready.
I work in Leixlip and see it first hand,
Another 200 constuction workers going this week

Exactly. I dunno why everybody likes them so much, Intel are ruthless sharks who dont give a **** about their workers. The brainwashing and "culture" in there is unreal. Employees / former employees will understand.

Immaculate Pasta

I've actually applied to the Intel Graduate scheme in Ireland to start next year and I'm from England. The scheme is brilliant.

Eric Cartman

thats a few years of construction jobs and jobs for those IT and engineering grads then , lovely if it goes ahead

Jake Rugby Walrus666

Zebra3 wrote: »

Do you have any idea what you're talking about?

"Pulling a Chavez"?

Being elected by the people?

Surviving a CIA backed coup?

Yes but I neither know nor do give a **** who chavez is.
So fooled ya.

Zebra3

Jake Rugby Walrus666 wrote: »

Yes but I neither know nor do give a **** who chavez is.
So fooled ya.

You certainly did.

Take a bow. :rolleyes:

Haelium

Irish Slaves for Europe wrote: »

doesn't metro north cost 600 million and it would create 4,000 construction jobs and 14,000 permanent jobs once its complete, I'd buy that instead, although in an ideal world we could have both

The problem is that those are state employed jobs, the idea behind backing intel is that between income tax and corporate tax it eventually works out in our favour.

kitchens decks

Eric Cartman wrote: »

thats a few years of construction jobs and jobs for those IT and engineering grads then , lovely if it goes ahead

fab 10 ..seems to be on hold now , lots of guys let go this wk lots more 2moro.......hope i aint 1 of them:(