Manufacturing & Supply Chain

The European Commission has approved an investment by the Irish State in Analog Devices Inc.’s €630 million Project FANFARE, which will result in 600 new jobs in Limerick over the next five years, as well as an additional 520 jobs during the construction phases.

Analog Devices is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. Analog Devices combines analog, digital, and software technologies into solutions that help drive advancements in digitized factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world.

The company established in Ireland in 1977 with the support of IDA. The focus of Analog’s Irish operation is to produce quality precision products through precision manufacturing while exploiting cost-efficiencies. ADI’s IPCEI ME/CT application is Ireland’s first since the inception of the Important Projects of Common European Interest and is supported by the Irish Government through IDA Ireland.

The €630 million Project FANFARE investment will enable the construction of a new, state-of-the-art, 45,000 sq-ft Research & Development and manufacturing facility which will support ADI’s development of next-generation signal processing innovations designed to accelerate the digital transformation of Industrial, Automotive, Healthcare, and other sectors. It is expected to triple ADI’s European wafer production capacity and aligns with the company’s goal of doubling its internal manufacturing capacity to enhance the resiliency of its global supply chain and better serve customer needs. This investment is expected to grow ADI’s employment footprint in the mid-west region of Ireland by 600 new positions, a significant increase to ADI’s current 1,500 employees in Ireland.

FANFARE is part of a new European Important Project of Common European Interest (IPCEI) in the area of microelectronics and communication technologies. IPCEI are a State Aid tool that facilitate large-scale cross-border projects that significantly benefit the EU and help achieve the twin digital and green transitions by investing in breakthrough innovation and infrastructure. They combine both public and private knowledge and resources from across Europe to support projects where the technological or financial risk is too great for one company or Member State alone.

Ireland is one of 14 Member States with direct participants in this IPCEI on Microelectronics and Communication Technologies (IPCEI ME/CT), with a further 5 Member States plus Norway also involved in the project. A total of 68 projects from 56 companies form this IPCEI ME/CT. The participating Member States will provide up to €8.1 billion in funding in the coming years, which is expected to unlock additional €13.7 billion in private investments.

The IPCEI ME/CT, which is the first IPCEI in which Ireland is directly participating, addresses the technological performance, sustainability and societal challenges of the next decade and is expected to result in a clear innovation advantage for Europe. The IPCEI ME/CT will connect a thriving ecosystem of innovative start-ups, SMEs, large enterprises, and research organisations from across the EU, with collaboration between participants a key element of the IPCEI. Indeed, the Irish participant, Analog Devices Inc. from Limerick will collaborate with several new partners from other Member States on their project but also on the projects of other companies.

Semiconductor chips are ubiquitous in our daily lives, and they are needed in almost every vital sector and service. They have critical application for health, energy, communications, and automation and as such, are central to the European Union’s digital and green transitions. Ireland has a significant semiconductor design and fabrication history, and we have developed a strong domestic and international semiconductor industry and R&D ecosystem, with over 130 indigenous and foreign subsidiary companies across the microelectronics value chain.

Ireland’s participation in the IPCEI ME/CT is an example of the country’s ability and commitment to play its part in realising the ambitions of the EU, outlined in the European Chips Act, to strengthen its capacity and capability in semiconductor production.

Simon Coveney TD, Minister for Enterprise, Trade and Employment, said of the European Commission’s decision: “My Department warmly welcomes the European Commission’s approval of Ireland’s participation in the IPCEI on Microelectronics and Communications Technologies. The Irish semiconductor industry has grown deep roots over 45 years and this is an opportunity for Ireland to contribute to the development of European capacity and capability in increasingly vital frontier technologies.”

Irish Semiconductor Industry

Ireland has a significant semiconductor design and fabrication history, and the country has developed a strong domestic and international semiconductor industry and R&D ecosystem, with over 130 indigenous and foreign subsidiary companies across the microelectronics value chain. There are over 20,000 people currently employed in Ireland’s semiconductor industry and it exports €13.5 billion worth of products annually.

Today the main force driving the semiconductor industry is the Internet of Things (IoT), which provides advanced electronic system solutions to healthcare, automotive, security, smart metering, robotics, surveillance, consumer sensor hubs and energy. The IoT has a worldwide economic value of €2 trillion.

The industry support infrastructure has been greatly enhanced by advanced research at several institutes across Ireland, including the Tyndall National Institute in Cork and the CRANN Institute in Dublin established in 2003. In recent years several new expert centres have been established to further enhance the industry such as Microelectronics Circuits Centre (MCCI), Advanced Materials and Bio Engineering (AMBER), Irish Photonics Integration Centre (IPIC) and CONNECT, among others.