Intel

“In our highly competitive and rapidly changing global markets, success is hard earned, establishing a high performing team with strong technical, managerial and leadership skills is critical to being able to build new products that lead in the marketplace. This makes a genuine contribution to the advancement of Ireland and of Ireland in Europe”. Jim O’Hara, General Manager, Intel Ireland and Vice President Technology Manufacturing Group

Intel is the world’s largest semiconductor chip maker and has a 75% share of the microprocessor market. The company’s largest customers are Dell and Hewlett Packard. Worldwide, Intel employs 94,000 people and includes wafer fabrication facilities in Ireland, Arizona, Oregon, New Mexico, California, Massachusetts and a Chinese operation currently under construction.

Intel established in Ireland in 1989 and has invested €7 billion expanding its product range over a number of generations of technology. Intel directly employs 5,715 people in Ireland (5,400 at Leixlip and 155 at Shannon). 9,050 jobs in the Irish economy are dependant on Intel. The company has paid €1.4 billion in taxes to the Irish Government over the last 10 years. Intel exports $2billion from Ireland annually. In 2006 Intel’s salaries in Ireland were 39% higher than the sector average.

Intel has announced a €50 million investment in the expansion of its R&D facility at the Shannon free Zone in Co. Clare. The investment has the capacity to increase Intel’s workforce bringing the total employment to approximately 300.

Intel’s Irish operations include;

• IFO – Fab 10 (1990) and Fab 14 (1995) manufactures Pentium microprocessors on 200mm/8 inch wafers using 0.18 micron technology.
• Fab 24 (2004) produces 300 mm/12 inch wafers using 90 nanometer process technology.
• Fab 24-2 (2006) manufactures 300mm/12 inch wafers using 65-nanometer process technology.
• Intel Shannon (2000) established by the acquisition of Basis Technology. Operation designs advanced microprocessors for use in embedded computing, communications and storage markets (Silicon Design, Software Engineering & Technical Marketing Operations based in Ireland).
• IT Innovation Centre (2003) – €16m investment in the research & development of applications in a wide variety of areas including peer-to-peer networks, digital health, mobility solutions, education deployment technologies (including wireless & satellite) and e-learning architectures and platforms – grown to a global network of 12 centres all reporting into Ireland.
• Expansion of Innovation Centre (2006) – Additional €20m investment.
• Silicon Design (2006) - €19m investment in silicon research, product design & test development.
• Digital Health Initiative (2006) - €25m investment over three years. Undertaking core research that will lead to identification of global digital technologies, products and services for the healthcare industry to provide preventative and independent care for the aged.
• Havok - Intel Corporation recently acquired 100% of Havok Incorporated, the animation software company, whose software and services are used by digital media creators in the game and movie industries. Intel paid approximately €79.2m for the company and Havok has become a wholly owned subsidiary of Intel and continues to operate as an independent business, working with its customers in developing digital media content.

Intel has described its philosophy as “innovate or die”. Key tenets underlying the Intel approach to innovation are:

• The customer demands innovation, which is anchored in specific customer needs
• A systematic approach is taken to every proposed innovation: the potential value is assessed and a business plan developed, while actual value is measured after implementation
• It is essential to put effort into innovation thinking and devote time to innovation
• There are great benefits to be gained from open innovation and consortia membership; Intel continually engages with broader industry to share best practice

Intel established its only European manufacturing facility in Ireland in 1989. Since then Intel has invested over €5.5 billion expanding its product range; Intel Ireland is now the largest Intel operation outside the US.

In 2003, Intel Ireland was asked to look at services innovation, a project that led to a dedicated IT Innovation Centre, focused on developing applications to drive future demand for Intel’s products.

The Innovation Centre has five main streams:

• Systematic Innovation – optimization of the chip design process.
• Managing IT for business value.
• IT core research areas including infrastructure, data agility and productivity and collaboration.
• Seeking improvements in core competencies.
• Green IT programme – optimization of sustainable IT.

Intel’s recent announcement of a €50 million investment in the expansion of its Co. Clare facility will involve two separate R&D projects. The first is a new hardware project involving Advanced 32nm Silicon Design and Validation, which aims to enable the next generation of products and provide small to medium sized businesses with a combination of improved performance, power efficiency, footprint savings and cost effectiveness. It will deliver a new chip with a significantly improved design for embedded applications. The second project is a software development project, extending Intel® QuickAssist Technology, to address price and power consumption constraints while delivering compelling performance. When these software products come on stream they will have a range of benefits for industry segments such as automotive and security.