Intel Ireland has firmly denied it will locate production of the next generation of micro processing chips in Scotland rather than with its European base in Ireland.

The London Times said yesterday the world's leading microprocessor manufacturer was negotiating with Korean electronics company, Hyundai, to rescue its deserted semiconductor plant in Fife. And it suggested that the acquisition could see the transfer of Pentium chip production from Ireland to Scotland.

Mr Liam Cahill, head of public affairs at Intel Ireland, said: "Intel is absolutely and totally committed to the continued production of leading edge microprocessors in Ireland, and there is no question of that process moving anywhere else."