The Irish Government is set to approve a new strategy to support the growth of the semiconductor sector in Ireland. The strategy was brought forward by Peter Burke, Minister for Enterprise, on Tuesday, 29 April.
This announcement underpins the government’s commitment to supporting the semiconductor industry and reinforces the view that it is a crucial sector to the country’s economic and strategic interests. The introduction of this strategy aligns with the IDA’s strategic objectives, which recognise the semiconductor sector as a key driver of future growth.
The strategy will focus on three key areas:
- Supporting high-value jobs.
- Securing long-term investment.
- Solidifying Ireland’s position as a leader in Europe’s semiconductor future.
Additionally, on 8 April, Minister Burke announced that the strategy will aim to “signpost actions” for the sector, “coordinate activities” among stakeholders, and provide the industry with a clear pathway for growth while focusing on EU-level opportunities.
The government will not provide any immediate funding with the new strategy. However, it will explore options to subsidise the semiconductor sector. Funding decisions will be made during Budget 2026 discussions and as part of broader investment strategies such as the National Development Plan (NDP) and the allocation of Apple and AIB windfall funds. The upcoming review of the NDP, led by Public Expenditure Minister Jack Chambers, will be a crucial opportunity to push for subsidies for the industry.
European Context
The strategy follows a recent report from the European Court of Auditors which found that there is little chance that the EU will meet its goal of a 20 per cent share of the global microchip market by 2030. Europe’s share of worldwide microchip value is estimated to reach 11.7 per cent by 2030. This is despite progress made by the EU Chips Act, which allowed for a relaxation of state aid rules to permit increased member-state investment in the sector. According to the ECA, the investments arising from the Act will have a limited impact on strengthening the EU’s competitiveness in the industry.
In addition to funding challenges, the report highlighted several other issues facing the EU semiconductor industry. These include:
- Over-reliance on imported raw materials.
- High energy costs.
- Constraints from environmental policies.
- Geopolitical instability.
- Shortage of skilled labour.
U.S Context
Furthermore, the strategy comes at a pivotal moment for the global semiconductor industry, with the Trump administration currently conducting a probe into imports of pharmaceuticals and semiconductors. According to Federal Register filings, the move is part of an effort to impose tariffs on both industries, citing national security concerns over heavy reliance on foreign production of pharmaceuticals and semiconductors.
