The jobs come about as a result of a partnership between US company ZAGG International and Irish company Cregg Logistics.
ZAGG designs shields and covers for personal electronic devices, such as iPhones, mobile phones and laptops.
Their subsidiary, ZAGG International Distribution, will create 40 jobs at Shannon, designing, selling and marketing these products.
Cregg Logistics, which has been based in Shannon since 1993, will create 130 new jobs in the manufacturing, assembly and distribution of the products to the European market.
The jobs are being supported with grant aid from the Government through Shannon Development.
They were formally announced by Minister for Enterprise Richard Bruton in Shannon this morning.
Minister Bruton said: 'The decision by these two companies to announce 170 jobs today is a massive vote of confidence in the region and the Irish economy.
'Government does not create jobs: businesses like ZAGG and CREGG do, but Government's role is to create an environment in which companies like these and others can grow.'
ZAGG Managing Director Brian Packer said Ireland's competitive corporation tax rate was instrumental in its decision to expand their Shannon base.
He said he company hopes to increase employment to 300 in the next four years. The jobs were unofficially announced last month.
