I am delighted to be here this morning to officially open the new Fab 24 plant here in Leixlip. This is a very special day for all of you at Intel - for the many staff who have trained specially to work in Fab 24; for the construction workers who delivered such a high specification plant on time and within budget; and for the management who have guided this development. Today also represents an important day for Ireland as Intel is a cornerstone of our economy.
The importance of Intels investment, both to Leixlip and to Ireland as a whole, cannot be overstated. The town has been transformed from a small village, to a thriving centre of activity today. Overall, the Intel impact is currently valued at over €400 million a year to the Irish economy. It has created a demand for world-class infrastructure and services; it has spurred a surge in technology learning and innovation; and it has acted as a catalyst for other high-tech investment in Ireland.
Above all, Intel coming to Ireland gave recognition to and acknowledged Irish ability to deliver to the demanding standards of a global marketplace.
The decision to build your European manufacturing and technology headquarters here in 1989 was an historic one. Better still, you have reinforced that commitment time and again. The recent decision to invest a further €1.6 billion in Fab 24-2 here in Leixlip comes as major boost to confidence right across our economy. It demonstrates that Ireland remains at the cutting edge in terms of delivery in the knowledge economy.
Intels success, I believe, stems from its adherence to your cofounder Robert Noyces motto not to be encumbered by history, but to go off and do something wonderful. Over the years you have constantly led advances in technology and innovation worldwide, and this Fab 24 plant is testimony to that.
The technology and power embodied in the microchips coming from this plant is almost beyond belief. I cannot even begin to contemplate how one embeds 3 billion components onto a piece of material as small as a 10-cent coin! Such is the pace of development in this sector however, that before this Fab 24 plant starts full production, another one producing even more powerful chips has already been announced!
Over the years the staff and management here have proven extremely flexible and capable of adapting to the demands made of them. The recently announced investment in Fab 24-2 is confirmation of Intels confidence in the ability of the Irish workforce - especially its ability to master ever more complex technologies and implement them flawlessly.
Our highly educated and motivated workforce has been one of the driving forces behind the Irish economic boom in recent years. If we are to remain at the cutting edge in the knowledge economy, then we have to invest in our people. That is why, through Science Foundation Ireland for example, we are investing heavily in our future innovators. We greatly appreciate Intels partnership with some of the top researchers in this country, in particular with the nanotechnology research centre, CRANN, in Trinity College and other initiatives around the country.
Our investment in R&D is not just about providing high-quality research however; it is about training the next generation who will work in companies such as Intel. Irelands future rests, to a great extent, on our continued ability to produce qualified people who will create the new products and technologies that will be at the heart of the future marketplace.
Intels renewed investment in Ireland also sends an important signal internationally. It proves that Ireland still has much to offer in terms of expertise, an educated workforce, a stable environment and low corporation tax. In recent years, we have also proven that we can weather the ups and downs of the global marketplace. Recent economic data proves just how well we are doing:
- Our annual inflation rate of 1.7%, although up in May, is still well below the latest euro zone estimate of 2.5%
- employment grew by almost 2% last year. Even at a time of international economic difficulty, 30,000 new jobs were created, while unemployment was kept to a comparatively low rate of 4.7%, which is well below the EU average;
- the latest exchequer returns show that we are well on course to meet our public finance targets for 2004, and;
- our growth rate this year should be well above the EU average
Coupled with this, Ireland has proven to be a great investment location. US Department of Commerce figures show that US companies in Ireland achieve a very strong rate of return of 24%, on average, on their investment. This certainly has to be one of the deciding factors in taking the decision to invest in Ireland.
Just like Intel however, we know that we cannot afford to rest on our laurels. We too, must constantly play on our strengths and work on our weaknesses, re-position, compete to win, create value and innovate. For a small country situated on the periphery of Europe and competing in the global marketplace, this is particularly critical.
As Taoiseach, I am proud to be here today to open this facility. I wish you every success with production in the plant.
Thank you
ENDS