[News] Intel Pours €5B Into Ireland Fab, Doubling Down on Intel 3 as Europe’s Most Advanced Chip Node

Intel’s foundry business appears to be gaining momentum amid soaring AI processor demand, with the chipmaker expanding manufacturing investment beyond the United States. The company, in a press release, has announced a €5 billion (US$5.7 billion) upgrade of its Ireland campus.

As noted by Reuters, the advanced manufacturing equipment now being installed at the site will support production of Intel Xeon 6 processors as well as next-generation Intel Xeon chips built on its Intel 3. Naga Chandrasekaran, Executive Vice President, Chief Technology and Operations Officer and General Manager of Intel Foundry, pointed out that Intel 3 is the most advanced technology that is manufactured in Europe.

Beyond current products, Intel 3 is set to remain a cornerstone of the company’s future Xeon roadmap. Citing sources, Wccftech reports that the node will power the I/O tiles of Intel’s upcoming Diamond Rapids Xeon 7 processor. Intel’s current Granite Rapids (Xeon 6P) already relies on Intel 3, while Clearwater Forest (Xeon 6+) transitions to the newer 18A node, the report adds.

Reuters also highlights the scale of the investment, adding that the investment represents about 30% of Intel’s planned US$17 billion capex for 2026. According to The Irish Times, Intel has invested around €30 billion in its Leixlip campus over the past four decades and expects to deploy the bulk of the new funding by 2027, with Fab 34 serving as the centerpiece of the expansion.

Opened in 2023, Fab 34 is Intel’s EUV-enabled manufacturing facility, using extreme ultraviolet (EUV) lithography to produce chips with smaller, denser, and more precise circuitry than previous-generation processes, the Irish Times report notes.

The latest investment follows Intel’s US$14.2 billion move in April to reacquire a 50% stake in its Ireland manufacturing facility from Apollo Global Management, reversing an earlier sale. According to Bloomberg, the deal reflects Intel’s growing confidence in its recovery and its push to secure a bigger role in the booming AI infrastructure market.

TSMC’s Europe Expansion Lags in Advanced Nodes

Meanwhile, TSMC, Intel’s major pure-play foundry rival, has taken a more measured approach to its European expansion. According to German media outlet Handelsblastt, the Dresden fab currently under construction is designed to produce chips based on 12–16nm and 22–28nm process nodes, primarily targeting automotive applications.

Despite relying on mature technologies, TSMC’s Dresden fab is considered one of Europe’s most important semiconductor investments in recent years and the region’s largest chip manufacturing project currently under construction, according to Central News Agency. The facility is scheduled to begin production by the end of 2027 and is expected to reach full capacity around 2030, the report adds.

However, Infineon, one of the key shareholders of ESMC, is pushing TSMC to go further. At the Bavarian Semiconductor Congress in Munich, Infineon Chief Manufacturing Officer Alexander Gorski called for TSMC to establish an additional Dresden fab equipped with more advanced process technologies, Handelsblatt reports.

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(Photo credit: Intel)