Intel received €30 million from Ireland to offset higher EU power bills — Ireland and Intel continue a tight partnership in chip fabs

Intel
Intel's campus in Leixlip, Ireland, home of the new Fab 34. (Image credit: Intel)

IDA Ireland, Ireland's agency responsible for attracting direct foreign investment, awarded Intel €30 million in 2023 to offset the rising costs of EU power bills due to Russia's invasion of Ukraine. A recent report from The Irish Times found the amount of the previously unknown sum Intel received from the Irish government as part of a larger €100 million investment into microprocessor producers in March 2023. 

The IDA cleared its plans to invest €100 million into Ireland's tech industry with the European Commission, which blamed "significant economic uncertainties, disrupted trade flows and supply chains and led to exceptionally large and unexpected price increases, especially in natural gas and electricity" caused by the Russian invasion. The payment was deemed "necessary, appropriate and proportionate to remedy a serious disturbance in the economy" by the governing body. 

Ireland's chip-making industry brings €8.7 billion in exports to Ireland annually, so the decision to subsidize some of its power costs was easy for the country to make. And with Intel claiming it contributes €2.75 billion annually to the Irish economy, Ireland is incentivized to give back heavily. Ireland provided Intel with refundable tax credits aplenty, though the total amount of these is unknown; Intel declared it received $645 million / €601 million in grants and tax credits from non-U.S. countries in 2023, though the breakdown of how much came from Ireland is unknown.

Ireland and Intel have enjoyed a strong partnership for many years, bolstered recently by Intel's construction of its new Fab 34 on its Irish campus, which has operated since 1989. Fab 34 provides high-volume manufacturing of the Intel 4 process, the only other plant besides Intel's Hillsboro plant doing so. The Intel 4 fabrication technology, a 7 mm process, currently only produces chiplets for Meteor Lake processors. Intel invested $22 billion / €17 billion to build the new Fab 34 facility, with $2 billion more coming soon to upgrade the fab. 

titleIntel gets €30 million to pay higher EU power bills — Ireland and Intel continue a tight partnership

Freelance News Writer
  • OneMoreUser
    Ireland is one of the countries in the EU that is taking advantage, them being a tax heaven and more has boosted their economy only it has been at the expense of other countries and essentially the common good.
    This latest move is just more of the same, only this then also lets Intel prioritize not spending so much on energy saving (no surprise looking at the CPU's).
    Reply
  • PEnns
    Poor Intel, it can't afford a €30 million power bill.

    Maybe Intel should start a GoFundMe.
    Reply
  • TerryLaze
    PEnns said:
    Poor Intel, it can't afford a €30 million power bill.

    Maybe Intel should start a GoFundMe.
    You go ahead and turn down 30 mil if it ever gets offered to you...
    Reply
  • 35below0
    OneMoreUser said:
    Ireland is one of the countries in the EU that is taking advantage, them being a tax heaven and more has boosted their economy only it has been at the expense of other countries and essentially the common good.
    This latest move is just more of the same, only this then also lets Intel prioritize not spending so much on energy saving (no surprise looking at the CPU's).
    Yeah. Shame *** is more expensive in Ireland than almost anywhere else. Europe sometimes has much higher prices for computer components, and Ireland is near the top of the charts.

    TerryLaze said:
    You go ahead and turn down 30 mil if it ever gets offered to you...
    30 million is kinda peanuts. 30 billion is a lot, but million?
    Reply
  • TerryLaze
    35below0 said:
    30 million is kinda peanuts. 30 billion is a lot, but million?
    Free is free, or discount is discount, there is no reason to turn away free money.
    I got reduced power bills as well during the time the prices where extremely high, and that's just as a normal consumer.
    Reply
  • jackt
    Cant they just use renewable energy, like many big-tech do ?
    Reply
  • TerryLaze
    jackt said:
    Cant they just use renewable energy, like many big-tech do ?
    Do you think that renewable energy is for free? Most of the times it is MORE expensive so they would need even more money.
    Reply