Intel has denied that it is closing down its entire Leixlip facility for three weeks this summer to cut costs.
The measure was one of a range of proposals considered by senior management in Co Kildare, but the company's Media Affairs Director Karina Howley said that it was rejected and 'at this stage' the company has no plans to close.
Media reports had suggested that Intel, which employs more than 4,000 people in Leixlip, would have saved millions of pounds if it introduced the measure.
Ms Howley said that the company would remain very focussed on cost cutting measures as the downturn in the chip sector continues amid the US economic slowdown.
Several other Irish-based technology firms have already decided to close their facilities to conserve cash amid the general downturn in the technology sector. Analog Devices in Limerick and Sun Microsystems in Dublin have introduced unpaid leave and decided to shut their facilities temporarily during the summer.
Last week Hewlett Packard asked its Irish workers to take a 10% pay cut or additional vacation days in an attempt to shave £1 million off its cost base.
