Ireland is leveraging clean energy, research expertise and strong public-private partnerships to position itself as a global leader in sustainable semiconductor innovation through its national Silicon Island strategy.
Jul. 22, 2025 –
As the world leans heavily into Artificial Intelligence, the demand for computing power, cloud infrastructure and the energy to fuel it all has reached a critical point.
At the heart of this technological surge lies a crucial question: can the semiconductor industry, essential to powering AI, align with the planet’s climate goals?
Seamus Carroll, Vice President and Head of the Semiconductor Unit at IDA Ireland, believes Ireland is poised to lead the way, positioning itself as a centre for advanced chip design and manufacturing and a global hub for sustainable innovation across the entire semiconductor value chain.
Turning climate goals into a competitive advantage
At the core of Ireland’s emerging identity as “Silicon Island” is a simple but powerful idea: sustainability isn’t a limitation; it’s a competitive edge. The Irish government’s Climate Action Plan, one of the most ambitious in Europe, aims to generate 80% of electricity from renewable sources by 2030. At the time of writing, Ireland ranks second in Europe for per-capita wind and solar energy production.
This clean energy foundation has become a central pillar in attracting the next wave of semiconductor investment, mainly from companies focused on AI and high-performance chips, where power consumption isn’t just a technical issue but a business and reputational one too.
Peter Burke TD, Minister for Enterprise, Trade and Employment, frames the opportunity clearly: “Powering advanced semiconductors with low-carbon electricity is not just environmentally sound, it’s commercially strategic.”
With strategies like this in place, Ireland finds itself in a unique position to offer a rare combination of engineering talent, cutting-edge R&D and a renewable-powered grid for companies seeking to balance performance with sustainability.
A magnet for global investment
Between 2023 and 2024, Ireland secured nearly €1 billion in semiconductor investments from industry heavyweights like AMD, Analog Devices, Infineon and Qualcomm. These aren’t just expansions—they represent fundamental shifts in strategy. AMD, for example, is transforming its Irish operations into one of its largest research hubs in Europe, focusing on adaptive computing and AI. Analog Devices is investing €630 million to triple its wafer production in Limerick and scale up its research capabilities.
Big multinationals don’t just define Ireland’s semiconductor landscape. Homegrown innovators like Mbryonics and YieldHub, as well as a new generation of Deep-Tech startups in fields like biosensing and advanced packaging, are adding momentum.
With more than 100 companies and research institutions now active in the space, Ireland has quietly built one of Europe’s most complete semiconductor ecosystems – from design and manufacturing to research and commercialisation.
A national strategy with global ambitions
In May 2025, the Irish government launched its first-ever national semiconductor strategy, Silicon Island, to ensure this momentum is sustained. This nationwide plan is about more than attracting investment – it aims to position Ireland as a long-term global leader in chip innovation, talent development and sustainable manufacturing.
The strategy aligns closely with EU ambitions under the European Chips Act, encompassing initiatives such as establishing a national semiconductor research centre, building ready-made sites for advanced chip fabrication and strengthening connections across the domestic supply chain.