Intel and Ireland: from world's most valuable chipmaker to struggling also-ran
Just five years ago, Intel was the world's most valuable chipmaker. Yet, in a technology world now consumed by AI innovation and dominated by other companies, most notably Nvidia, its fortunes have changed drastically.
In recent times Intel's shares have plummeted more than 50 per cent and its market capitalisation stands at about $102 billion. As well as losing ground to chip rivals, it is under pressure to sell off its loss-making manufacturing business.
Intel says it contributed €3.73 billion to the Irish economy in 2023 and was responsible for 0.7 per cent of overall GDP. As well as employing 4,900 people, it supports about 770 Irish suppliers with €284 million in annual expenditure.
Ireland has had a long, mutually beneficial relationship with the US giant. Here is how it has played out amid recent difficulties.
READ MORE
2019 –
After three decades in Ireland, construction begins on the €17 billion Fab 34 in Leixlip. The multi-year project would double the manufacturing capacity in Ireland, enabling the production of Intel 4 and Intel 3, the company's most advanced process technologies.
July, 2022 –
Demand for its PC chips cools off from pandemic highs. Intel lowers its full-year revenue forecast. Shares fall.
October, 2022 –
The firm plans a major reduction in headcount. The company is battling a steep decline in product demand and is struggling to regain market share ceded to rivals. With pledges to slash costs, it looks at staff reductions and slower spending on new plants to net savings of $3 billion (€2.6 billion) by the following year.
December, 2022
– Staff in Kildare are told to consider taking unpaid leave amid a slowdown in demand for its products and 15 per cent drop in PC sales.
January, 2023 –
About $8 billion is wiped off the company's market value following dismal earnings projections and unease at the slump in the PC market. Revenue forecasts are $3 billion below estimates.
February, 2023 –
Intel slashes its dividend payment to the lowest level in 16 years in an effort to preserve cash and focus on its turnaround. It says 'improved financial flexibility will support the critical investments needed to execute Intel's transformation during this period of macroeconomic uncertainty.'
May, 2023 –
Nvidia becomes the first chipmaker to hit a $1 trillion valuation.
September, 2023 –
Kildare's Fab 34 facility opens. Intel chief executive Pat Gelsinger says its 'critical chip' is the most advanced it has ever produced and will 'enable AI everywhere'.
January, 2024 –
The first batch of Intel's most power-efficient processor, the Meteor Lake, to aid AI and machine learning capabilities are shipped in what is dubbed its 'largest architectural shift in 40 years'.
March, 2024 –
Competitor Nvidia unveils its latest more powerful artificial intelligence chips with eye on extending industry dominance.
June, 2024 –
Apollo Global Management buys 49 per cent stake in Intel's Leixlip plant for $11 billion.
August, 2024 –
Intel moves to cut almost 17,000 jobs and suspend dividends as it attempts to restructure to compete artificial intelligence. The cuts are part of a $10 billion trim, but shares still fall 13 per cent. Management in Ireland begins consultations with staff on voluntary redundancies, understood to be open to about 4,000 people but with no specific target number.
September 2024 –
Staff told of plans to close its facility at Shannon by late 2025, with the base for the firm's operations moving to Leixlip.
November, 2024 –
Company books a €17.2 billion set of restructuring and asset impairment charges in an attempt to rebuild competitiveness.
December, 2024 –
As troubles continue to mount at the chipmaker, chief executive Pat Gelsinger says he will step down.
March, 2025 –
Former board member and semiconductor veteran Lip-Bu Tan (65) is named as replacement chief executive in a bid to revitalise the ailing company. Shares jump more than 11 per cent.
April, 2025 –
Intel agrees to sell its Altera chip unit to private equity group Silver Lake to raise cash. If follows a cost-cutting move in January which saw it separate Intel Capital into a new standalone fund.
April, 2025 –
News emerges the company is to cut more than 20 per cent of staff globally.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
5 hours ago
- Irish Examiner
RTÉ coverage of Pope Francis's funeral and election of Pope Leo cost €150k
RTÉ's coverage of the death of Pope Francis and the subsequent election of Pope Leo cost the broadcaster €150,000. Figures released under Freedom of Information show that the broadcaster's extensive coverage of the death of the pontiff included €4,200 in venue hire and over €1,200 in subsistence costs for management grade staff from Radio 1, with the overall costs of travel, hotels, and subsistence coming in at around €150,000 in total. RTÉ provided hours of coverage across its platforms upon the death of Pope Francis in April, including his funeral and the election of American cardinal Robert Francis Prevost as the 267th leader of the Catholic Church and the successor to Francis as Pope Leo. The station's output included a special broadcast of its flagship Prime Time programme with records showing that staff airfares and hotels for that show cost around €3,600. While the cost of flights was one of the larger outlays, some airfares came in at as little as €13. The world's media and thousands of pilgrims descended on the Vatican City upon the death of Pope Francis, with mourners standing in line for hours to pay their final respects while his body lay in state in St Peter's Basilica ahead of his funeral. That was followed by coverage ahead of the papal conclave which lasted just over a day and a half and resulted in the election of the first American pope. In response to the FOI request, RTÉ said: "In relation to hotels, it is not possible to extract a precise spend on this alone so we have included 'staff subsistence' which would cover this and other costs. "Similar to civil and public servants, RTÉ personnel were paid to a set 'day rate' which would cover the cost of accommodation as well as food etc. "[T]he costs incurred were necessary to allow RTÉ fulfil its obligations to provide comprehensive coverage of two major global events across radio, television and online in both Irish and English. "Those who travelled provided many hours of coverage for all radio and television news and current affairs programming as well as online content spanning the days between the death of Pope Francis to the election of Pope Leo." Read More Pope Leo XIV calls for aid to reach Gaza in first general audience
RTÉ News
6 hours ago
- RTÉ News
€5bn plan to turn Athlone into a green city unveiled
A €5bn master plan has been unveiled for a new green city in Athlone as a solution to Ireland's future population growth. The blueprint by Ballymore Group aims to cater for a population of 100,000 by 2040. The details were outlined by the groups founder and chairman, Sean Mulryan, who shared his vision for a sustainable planned 15-minute city with a wide range of stakeholders including Government ministers and opposition spokespeople, and with senior figures across the Irish education sector, industry, state agencies and local authorities. The plan, which Mr Mulryan spoke about it detail in the Business Post today, was later confirmed by his company. The plan proposes the expansion of the TUS university campus in Athlone to facilitate 25,000 students. The plan also proposes the construction of a 5,000 bed eco-friendly student village. Mr Mulryan's plan includes 20,000 zero-carbon homes as well as new health, educational, arts and sporting facilities to facilitate the population growth it estimates will reach 100,000 people. The plan also proposes that 5,000 hectares of surrounding land is allocated for rewilded wetlands, callows and rewetting of bogs. Mr Mulryan said the plan, which is seven years in the making, has been discussed with government ministers, opposition spokespeople and senior stakeholders in the education and industry sectors, as well as state agencies and local authorities. In a statement today, the company said that the plan for Athlone is "one that could be replicated to provide regionally balanced growth while enabling Ireland's green transition". he company said: "Athlone was identified as the ideal pilot as it has all the fundamental building blocks in place including the university, a town centre with room to expand and enable green transport and the natural resources to allow 90% of its energy to be generated from renewal sources and to support the national energy transition. "It's central location in the heart of Ireland and bridging the North-West and Midlands regions also ensure a wide economic benefit." Mr Mulryan said his company will do all it can to make the plan become a reality however "it needs to be driven from the top by government, by this administration and by the successor governments that take office in the years ahead, if it is to come to pass." Mr Mulryan has assembled a steering group to bring this new green city to life. The company wants to see the adoption of the National Planning Framework to allow for the delivery of educational, residential, commercial and biodiverse infrastructure. Athlone and the surrounding areas must also be declared as nationally important strategic, enterprise and biodiversity zones, it said. Ballymore hopes to secure private and public investment for the plan which it said is "a credible blueprint for addressing Ireland's demographic and environmental challenges, decarbonising and stimulating the economy, restoring natural habitats and rebalancing development away from the east coast"
Sunday World
6 hours ago
- Sunday World
Mike Lynch's sunken superyacht taken to Sicilian town for full probe
Irish tech tycoon Mike Lynch and his 18-year-old daughter were among those killed when the superyacht sank off Sicily on August 19 Tech tycoon Mike Lynch's superyacht the Bayesian is moved after being lifted to the surface near the fishing town of Porticello, Sicily. Peter Byrne/PA Wire Tech tycoon Mike Lynch's superyacht the Bayesian is moved after being lifted to the surface near the fishing town of Porticello, Sicily. Peter Byrne/PA Wire Tech tycoon Mike Lynch's superyacht the Bayesian is moved after being lifted to the surface near the fishing town of Porticello, Sicily. Peter Byrne/PA Wire Tech tycoon Mike Lynch's superyacht the Bayesian is moved after being lifted to the surface near the fishing town of Porticello, Sicily. Peter Byrne/PA Wire Tech tycoon Mike Lynch's superyacht has been taken to the town where British and Italian investigators will carry out a full probe into the sinking. Seven people died when the Bayesian sank off Sicily on August 19 including billionaire Mr Lynch, 59, and his daughter Hannah, 18. The vessel was held above the water by one of Europe's most powerful floating sea cranes, which set off from the fishing village Porticello at around 1.10pm local time. It was held in front of the crane as it moved. People navigate on a boat past the wreckage of "Bayesian" yacht. Photo: REUTERS/Igor Petyx The vessel arrived in Termini Imerese, a town around 12 milies away at just after 3pm on Sunday. It will then be moved into a specially manufactured steel cradle, which has a tarpaulin underneath for pollution prevention. Salvage workers on site, not accompanying the vessel to port, are conducting a 'full sweep' of the seabed near Porticello for any potential debris, a project insider said. Tech tycoon Mike Lynch's superyacht the Bayesian is moved after being lifted to the surface near the fishing town of Porticello, Sicily. Peter Byrne/PA Wire Italian prosecutors previously said raising and examining the yacht for evidence would provide key information for its investigation into the sinking. It will also aid the Marine Accident Investigation Branch (MAIB) report on what happened. Tech tycoon Mike Lynch's superyacht. Photo: Peter Byrne/PA Wire News in 90 Seconds - June 22nd Simon Graves, an MAIB investigator, previously told the PA news agency: 'When the wreck is brought ashore, we'll be completing a full examination of the wreck and we'll be finding out all of the elements that might have contributed to the safety of the vessel.' Further details such as 'escape routes' will be included in its final report on the sinking, according to Mr Graves, who added: 'Once we get access to the vessel we'll be able to tell a fuller picture of activities on board and the sequence of events.' The wreckage of "Bayesian" yacht. Photo: REUTERS/Igor Petyx The vessel was originally expected to be raised last month but salvage efforts were delayed after a diver died during underwater work on May 9, prompting greater use of remote-controlled equipment. About 70 specialist personnel had been mobilised to Porticello from across Europe to work on the recovery operation. Inquest proceedings in the UK are looking at the deaths of Mr Lynch and his daughter, as well as Morgan Stanley International bank chairman Jonathan Bloomer, 70, and his wife, Judy Bloomer, 71, who were all British nationals. Tech tycoon Mike Lynch's superyacht the Bayesian is moved after being lifted to the surface near the fishing town of Porticello, Sicily. Peter Byrne/PA Wire Fifteen people, including Mr Lynch's wife, Angela Bacares, were rescued. Mr Lynch and his daughter were said to have lived in the vicinity of London and the Bloomers lived in Sevenoaks, Kent.
