We can’t live without semiconductors. From cars and smartphones, to medical equipment and gaming consoles, the ever-increasing demand for the ubiquitous electricity-conducting materials continues to grow at pace.
In order to meet this demand, international and German companies need to collaborate to build more fabrication plants (or “fabs”), and this offers fresh opportunities for Irish construction, engineering and design firms to become part of the boom in the sector in Germany.
Ireland has a decades-long semiconductor history. The first factory was built by Analog Devices in 1976 in Limerick, followed by Intel’s manufacturing and technology hub in Kildare in 1989.
Since then, there has been an influx of international and domestic firms, leading to an ecosystem of 20,000 full-time employees across 130 companies.
The €30bn project includes two state-of-the art semiconductor factories operating on the site
From designing data centres to building pharmaceutical plants, Irish high-tech construction and engineering companies are globally renowned for their varied experience, meticulous expertise and flexible approach. Their in-depth knowledge and skills are well-suited to demanding and complex projects.
Exports from Irish-owned firms — supported by Enterprise Ireland, across industrial, life sciences and construction sectors — surpassed €10bn last year. The high-tech construction and housing sector in particular accounted for most of those exports, with a 15pc increase from 2022 to 2023.
Across Europe, the semiconductor industry is ramping up. Since the pandemic, there has been a rise in demand for European semiconductor microchips, while the European Chips Act aims to double the EU’s global share of chip production to 20pc by 2030.
This current surge opens the door for Irish companies, with their strong track record, to take advantage of high-profile semiconductor opportunities all over Europe.
Germany, in particular, is a lucrative potential market. In fact, 10 out of 16 planned EU microchip plants are announced to be in Germany, with projected investments of over €48bn.
For example, tech giant Intel announced in 2022 that it plans to build a manufacturing plant in Magdeburg, 130km west of Berlin, backed by state subsidies.
The €30bn project includes two state-of-the art semiconductor factories operating on the site, and this project alone offers huge potential opportunities for Irish firms.
Last week, 17 leading Irish construction and engineering companies travelled to Magdeburg to meet legal partners, public bodies, local stakeholders and consultants to exchange knowledge, discuss local challenges and to explore business opportunities in relation to this particular project and investment.
To explore opportunities in the German high-tech construction market, contact lotta.pick@ enterprise-ireland.com. International companies can also get in touch to learn more about Irish construction partners at enterprise-ireland.com/en/global/high-tech-construction.
Lotta Pick is market adviser for high-tech construction for Germany and Austria at Enterprise Ireland.