With a significant semiconductor design and fabrication history, Ireland has built an extensive and technology-rich semiconductor industry comprising over 130 Irish-Owned and FDI companies, employing over 20,000 people, and making up part of a 175,000-person strong broader ICT sector with overall exports of €13.5 billion worth of products annually.
In this context, and in line with commitments in the Programme for Government, I launched Silicon Island: Ireland’s National Semiconductor Strategy in May 2025, as a clear signal of Government support for such an economically and strategically vital sector for both Ireland and the EU. Such a clear message of tangible support for the sector, the Government believes, is important to international investors, particularly coming at a time of international uncertainty, as well as in the context of other challenges, but also the opportunities arising for the sector as the world rolls out various AI and other technological innovations.
As I highlighted at the launch of our Strategy, a KPMG study identified that by 2040, with the right backing, Ireland could support up to 34,500 new semiconductor roles, and I believe Silicon Island is the Strategy that will enable us meet that opportunity. Accordingly, the Strategy includes a suite of deliverables owned by my Department, the Enterprise Agencies – IDA Ireland and Enterprise Ireland – and Tyndall National Institute, among others.
To this end, we will work with our partners in IDA Ireland to secure the development of:
• One leading-edge fabrication facility (Integrated Design Manufacturer or Foundry) in a regional location;
• Two trailing-edge foundries; and
• One advanced packaging facility.
To fulfil these ambitions, the Government is acutely aware of the strategic imperative to position Ireland as a competitive location for semiconductor fabrication facilities, which are critical to global supply chains and national economic resilience. Semiconductor fabrication plants, or “fabs”, require large sites due to their significant land use and the need for expansion space. The establishment of such advanced manufacturing operations requires substantial capital investment across several key infrastructure domains. Accordingly, the Programme for Government outlines a policy aim of expanding the IDA Ireland land bank, including consideration of new advanced manufacturing facilities in strategic, regional locations, and developing Next Generation Sites (NGS) with all of the necessary utilities and services to secure and accommodate a major semiconductor investment.
The NGS approach will be plan-led, streamlining development and reducing planning risks, and provide pre-permitted, utility-intensive sites, enabling swift development and certainty for investors. Each site will be developed in stages over several years to facilitate incremental investment in the necessary infrastructure. Funding for land acquisition for the first two sites, planned for the west and east of the country, is coming from my Department's capital allocation under the revised National Development Plan. A third site is planned for the south in future years.
It is important too that we encourage multinational companies to partner with Irish enterprise to foster a strong, mutually supportive sector. This will be achieved through close collaboration between IDA Ireland and Enterprise Ireland to strengthen linkages between the Agencies’ respective client bases within the semiconductor sector. This work will help local firms become embedded in the value chains of this strategic sector to develop a well-represented and self-sustaining ecosystem.
Enterprise Ireland is also leading on commercialisation support; access to finance; scaling of technology start-ups and spinouts; R&D and emerging technologies; enhanced R&D support for its clients in and associated with the sector. In this regard, Enterprise Ireland will also continue to ensure that its research and innovation programmes and supports are available and relevant to the semiconductor ecosystem, including in niche areas where Ireland and the EU can foster cross-sectoral opportunities including semiconductor technology as an enabling technology across sectors of strategic importance to Ireland and Europe such as quantum chips, advanced packaging (chiplets, heterogeneous packaging), neuromorphic chips, and sensors.
Enterprise Ireland is also focusing on activities to generate deep-tech spin-outs, leveraging its Commercialisation Fund, as well as the expertise of Tyndall National Institute’s Entrepreneurs in Residence programme. Over the past decade, Enterprise Ireland has funded a portfolio of Commercialisation Fund projects in Tyndall and will continue to support high-risk/high-reward spin-out projects with ongoing commercialisation support from assigned Enterprise Ireland Commercialisation Specialists.
It should also be noted that Irish SMEs, such as Mbryonics and Pilot Photonics, have recently received funding from the European Innovation Council (EIC) to allow for further scaling of their operations. Moreover, Ireland’s overall success in the Horizon Europe EIC programme, supported by Enterprise Ireland, highlights the innovation and capability of Irish semiconductor companies to compete on a global level. This funding provides the critical support required to enable these innovative semiconductor companies to develop and scale their businesses.
The Government is also working to harness the European Chips Act as a vehicle to further enhance the sector’s research, development, and innovation landscape and to increase Ireland’s capacity to produce semiconductor chips in support of the Act’s ambitions, building on Ireland’s existing strengths in the semiconductor sector and related ecosystem.
Utilising our fabrication and development bases built up over several decades through household names in the industry successfully operating from here, Ireland has already begun implementation of the European Chips Act.
Over €70 million in national and EU funding has been allocated for Tyndall’s participation in three EU Pilot Lines, strengthening links with leading semiconductor institutions like IMEC, Leti, and Fraunhofer. These pilot lines aim to bridge the gap between research and industrial deployment, as well as accelerating the development of advanced semiconductor technologies.
I-C3, the National Competence Centre for Semiconductors, has been established with Tyndall National Institute as co-ordinator and MIDAS Ireland, MCCI, UCD and NovaUCD as partners. I-C3 is one of 27 Chips Competence Centres across the EU being launched in 2025 as part of the European Chips Act. In that regard, I-C3 will provide SMEs, startups, and scale-ups with expertise and technological support to speed up innovation in the semiconductor sector.
Furthermore, Analog Devices is currently partnering with 14 EU Member States in the Important Projects of Common European Interest (IPCEI) on Microelectronics and Communication Technologies.
My Department will continue to seek opportunities from instruments such as IPCEI, and others like Horizon Europe, and the Digital Europe Programme, combining national and EU funding to maximise impact for the semiconductor ecosystem in line with the aims of Silicon Island.
The Government also recognises the global nature of semiconductor supply chains, and we are seeking to building partnerships and creating stronger linkages within the global industry. In this regard, Ireland is currently working with our European partners through the European Semiconductor Board, and as part of the European Semiconductor Coalition, on the successor to the European Chips Act which is due in 2026.
