Ireland should look at creating a comprehensive competitive programme to attract and retain semiconductor chip makers.

That’s according to a letter obtained by the Sunday Times, which was written by Leonard Hobbs, the Government affairs leader for Intel in Ireland.

Newstalk Business Editor Joe Lynam told Newstalk Breakfast that the letter was sent to former Minister for Public Expenditure Paschal Donohue, now Minister for Finance.

“It said in the letter that some Asian states currently offer much larger incentives then the €100 to €120 million on offer from the IDA here,” he said.

“[Mr Hobbs] said that Ireland should look at creating a, quote, ‘comprehensive competitive programme to attract and retain chip makers’.

“Now, Intel, of course, has invested €30 billion in Ireland over the past few decades, including €14 billion at Fab 34, the most recent fabrication unit down in Leixlip.”

An overview of the Intel plant in Leixlip, Co Kildare. Picture via @Intel_IRL on Twitter

However, Joe said that Intel have “missed the boat” when it comes to AI chipmaking.

“Nvidia is mopping the floor with everybody, and now there is talk about Intel maybe being sold to other companies,” he said.

“So, they’re very nervous in Leixlip, I suspect, and the entire Irish economy would look up if something nasty happened to Intel.”

In 2023, Intel contributed €3.73 billion to the Irish economy and was responsible for 0.7% of Ireland’s GDP.

19,464 full-time equivalent jobs have been created through the company, in addition to the 4,900 people working for Intel.

Main image: The Intel manufacturing plant in Collinstown Park, Leixlip, Co. Kildare. Picture Colin Keegan, Collins Dublin.