Intel’s Fab 34 fab receives 30 million euros in subsidies

Intel’s Fab 34 wafer fabrication facility stands as the most advanced semiconductor manufacturing site in Europe and is uniquely distinguished as the only facility on the continent to employ EUV lithography machines for mass production. Located approximately ten miles west of downtown Dublin in Leixlip, Ireland, Fab 34 also holds the distinction of being the first Intel location to install an EUV lithography machine. It is currently the sole facility, aside from its Hillsboro plant, that utilizes the Intel 4 process to mass-produce products including Meteor Lake.

Fab 34 this month reached an important milestone in the Intel 4 journey when it began running its First Full Loop silicon.

The Industrial Development Agency (IDA) Ireland, an official investment and development agency under the aegis of the Irish government, is tasked with promoting domestic investment and attracting foreign direct investment. According to media sources, in 2023, IDA Ireland granted Intel a subsidy of 30 million euros to offset the rising costs caused by increased electricity prices in Ireland.

It is understood that both IDA Ireland and the European Commission have approved a plan to invest 100 million euros in Ireland’s technology sector to compensate for the sudden or unexpected rise in electricity and natural gas prices, deeming these funds “necessary and appropriate” to prevent disruption in economics, trade, and supply chains.

The semiconductor industry annually contributes 8.7 billion euros in exports for Ireland, with Intel alone adding 2.75 billion euros to the local GDP each year. Thus, the Irish government is highly motivated to reciprocate, providing substantial tax credits to Intel and, on this occasion, subsidizing a portion of the electricity costs. Previously, Intel disclosed that it had received 645 million USD in subsidies and tax credits from non-US countries, though it did not specify amounts by region.

There have been reports that Intel is seeking to raise 2 billion USD in equity financing for the expansion of its Fab 34 wafer fabrication facility in Ireland. Rumors suggest that Apollo Global Management, KKR & Co., and Stonepeak, three asset management firms, are considering forming a joint venture to invest in the Fab 34 facility and acquire a stake in the property.