2026-07-08

The issue I want to raise today is the national semiconductor plan. A lot of people wonder what exactly semiconductors are and what exactly that means because it can be a catch-all name in itself. Realistically, they are the chips that power modern electronics and modern computing. Ultimately, they are one of the most important items worldwide. This is obviously something we cannot measure easily but we know how important it is. We have seen the geopolitical impact of semiconductors over the past number of years with the issues in Taiwan, the issues with China and the discussions with America. Semiconductors have been a key part of that focus world-wide. Some might ask why I am raising this topic, which may be an international topic, and why it is so important. For me, this is a really local issue. One of the largest semiconductor plants world-wide is only a few hundred metres from my house. It is a large employer where a multitude of my friends, neighbours and even family, at times, have been employed. Intel has been hugely important in north Kildare and, indeed, internationally. We know that in the US, the CHIPS Act has been hugely important and that there have been similar plans in Europe. Ultimately, what I want to discuss today is the national semiconductor plan and we, in Ireland, are doing about and its progress. Obviously, Intel is a key issue I have raised since I came into the Dáil. As I said, I know the impact and footprint it has all across north Kildare, Leixlip specifically and, indeed, Ireland, whether that is through rates paid to Kildare County Council, wages paid or, indeed, corporation tax. Whatever element it is, its support to the State is enormous and that is something of which I think we are all very conscious. Once again, with its importance and the key impacts of the national semiconductor plan in mind, what I am specifically asking about today is the progress and plans we have regarding the clusters, growth and employment opportunities we have for semiconductors. We all know that Ireland and the world are changing from an employment perspective. One hundred years ago, Ireland was an agri-state. It is now very much a mix. Agriculture is still obviously hugely important, but at the same time, it is almost industrial or post-industrial, in many ways, at true AI computing. However, Intel remains at the forefront of that and is a place where there are thousands of jobs. Indeed, 4,000 or 5,000 are direct employees and there are several thousand more employees working there, not to mention the employment ecosystem that extends well beyond that. I wanted to raise the real importance of semiconductors and the importance of Intel, because we know the difficulties such entities face in Ireland. We have challenges with energy, employment opportunities and the skill sets required. Ultimately, these are really technological skills. How is the national semiconductor plan going, what different phases are we at and how can we continue to support companies like Intel and the opportunities that might arise from it in having other clusters and companies in that same area?

I thank the Deputy for raising this important matter. He is absolutely right to highlight the importance of this sector, particularly for the communities he represents in north Kildare, such as Leixlip, which has played a central role in Ireland’s technological success. The Government and I completely recognise the importance of this strategic sector. That is why in May 2025, the Minister, Deputy Burke, launched Silicon Island: Ireland’s National Semiconductor Strategy, which aims to make Ireland a global leader in semiconductors. Through a successful implementation of its three pillars - building on our strong ecosystem, developing skills and talent, and identifying and seizing opportunities - Silicon Island promises to deliver for multinational and indigenous Irish companies alike. Significant progress has been made in implementing the strategy over the past year. Already, over €70 million in combined national and EU funding has been secured for the Tyndall National Institute’s participation in three European pilot lines under the European Chips Act. The national competence centre for semiconductors, I-C3, is now operational as part of a European-wide network, providing SMEs and researchers with access to world-class expertise, pilot production lines, design platforms, funding supports and training. The expert group on future skills needs has commenced a specific study on the semiconductor sector, which is due to be published in quarter 3 of this year. This is in addition to the next generation sites initiatives, which is being led by IDA Ireland to deliver large-scale, fully serviced industrial sites to secure and accommodate future semiconductor investments. Through increased investment in Ireland’s R and D capabilities, training and upskilling our current and future workforce, scaling our SME sector and strengthening our competitiveness, this strategy will continue to support existing and future investments in Ireland’s semiconductor sector. Indeed, the strategy is already delivering for companies in Ireland, with a number of companies, including Openchip and Qualcomm, making major investment announcements in recent months. However, there is still more to do as a Government to advance this fast-growing sector, and the launch of the advisory council to the semiconductor sector will mark further progress on the next phase of the Silicon Island’s implementation. This industry-led forum will support the ongoing growth and development of the sector and assist in making Ireland and Irish companies world leaders in this vital technological sector.

I welcome the response, as well as the many announcements that have come in and the efforts that have been made. Even going back to last year's budget, one thing I highlighted beforehand and discussed was the importance of the R and D tax credit. We can see how companies like Intel benefit, and I would argue that a lot more Irish SMEs should. We should make it easier for them separately, but that is a different point. We have tax innovations in this way, which have strengthened the opportunity for the likes of Intel. At the same time, we need to ensure we have a plan in place, not only for Intel but for other companies that may wish to come here, as the Minister of State has outlined. Semiconductors are also a strategic opportunity from an Irish perspective. We are ahead of the curve from a European point of view in north Kildare in that we have Intel, which many other countries in Europe do not have. We have a knowledge base and a history. Intel has been there since I was a child. With that local knowledge and capability, we want to ensure Ireland stays a step ahead. I want to ensure we stay ahead of the likes of the Netherlands, Germany and Italy because ultimately, while we are all part of the EU, there is a lot of competition in this regard. We need to make sure Ireland continues to be at the forefront of such a strategic endeavour. We have seen the discussion worldwide about America wanting to get semiconductors because of their importance from a military perspective, and that will have consequences in Europe. We need to make sure Ireland is at the forefront. I know this is outlined in the plan, but ultimately, it is about getting those concrete steps to ensure that happens.

I thank the Deputy for raising this important matter and for his work on the artificial intelligence committee, alongside the critical infrastructure committee. We recognise the importance Intel brings, not just to Leixlip and Kildare but also to Ireland in general. It is the cornerstone of Ireland's semiconductor ecosystem and one of the most significant industrial investments in the history of the State. It is one of the largest private sector employers, and we need to continue to support it through the Government, the IDA and Enterprise Ireland. We remain actively engaged with Intel to ensure it can continue to grow but it is also supported through its competitiveness, talent development and investment. I know the Deputy has had continuous engagement with the Minister, Deputy Burke, on that. Getting back to Sillicon Island, it is not simply a strategy document. It is very much a programme of investment in skills, research, infrastructure and competitiveness. We have started from a position of strength, and we need to continue that investment over the long term. That is why we are actively working with European partners on the chips Act 2.0. This will build on progress that has been achieved under the original European Chips Act. As part of our European Presidency, we will work to advance the agenda and strengthen Europe's position on critical semiconductor technologies. That is why the Government is working with IDA Ireland to advance the next generation sites. We want Ireland to continue to be attractive to semiconductor manufacturers, enhancing the big multinationals that are already here. Through the continued support of firms such as Intel and investment in skills and innovation, we can continue to remain at the forefront of Europe's semiconductor future.