Microchip Technology is investing $20m to create a new development centre based in Cork.
The new facility will create 60 new jobs over the next three years and about 200 jobs within the next seven years.
Microchip also has operations in Dublin and Ennis.
The new positions include roles for engineers for integrated circuit design and testing, hardware and software system design, applications development plus field and customer support.
Located close to Cork city centre, the new facility will incorporate an engineering lab to support state-of-the-art innovation and extend Microchip's regional customer support.
It will also participate in Microchip's New College Graduate (NCG) programme, which operates worldwide, and in the Government's Skillnet programme which promotes the development of future skills.
The project is supported by the Government through IDA Ireland.
Ganesh Moorthy, President and CEO-Elect of Microchip, said the new Microchip development centre in Cork will establish a significant R&D presence in Ireland and emphasises its commitment to Ireland and Europe.
"Cork was chosen for the development centre as it is the second-largest city in Ireland, with a growing pool of talented engineers and the centre will add to Microchip's ability to deliver superior products and be able to provide timely response to our customers," he said.
"Availability of analogue and mixed-signal talent is another key factor in selecting Cork," he added.
Tánaiste and Minister for Enterprise Trade & Employment Leo Varadkar said there is a deep pool of talent in Cork and the South West enabling companies like Microchip to grow and embed their operations in Ireland.
Taoiseach Micheál Martin said the new centre is further testament to the depth of engineering and research talent in the country.
"The partnerships established with leading Irish universities will also ensure strong opportunities for graduates in the growing digital economy," he added.
IDA Ireland CEO Martin Shanahan said Microchip's investment in a new development centre aligns with the IDA's strategy to attract engineering development activity to Ireland and to secure investments for regional locations.