Xilinx Ireland is expected to announce the creation of an additional 500 jobs at its Dublin plant today. The computer chip manufacturer currently employs 380 people at its operations in Citywest Business park.

It is understood that the jobs announcement will be targeted at the high end research and development sector of the industry. The additional jobs will come on stream over the next three to five years, although further job increases have not been ruled out.

This phase of the company's expansion is thought to be worth in excess of £40 million (€50 million), including backing from IDA Ireland. The company is considered to be one of the US's leading blue chip technologies firms, within its sector.

Just under one year ago Xilinx received planning permission from South Dublin County Council for a 238,642 sq ft project comprising buildings capable of accommodating well in excess of 1,000 people. It was said to be the equivalent in size to one of Intel's fabrication plants.

Xilinx, which is based in California held its annual board meeting at the Dublin plant last June, an unusual move. At that time The Irish Times reported that a significant expansion plan had already been agreed and could be announced by the end of last year.

Today's announcement will be attended by the Tanaiste and Minister for Enterprise Trade & Employment, Ms Harney, the US ambassador Mr Michael J. Sullivan and Mr Wim Roelandts, chief executive officer, Xilinx.

Xilinx customers include Hewlett-Packard, Nortel, 3Com, NEC, Ericsson and Boeing.

Last month, Xilinx reported a 70 per cent increase in third quarter revenue to $437.4 million (€474.6 million) for over the third quarter of the previous year. However, revenues were up just 3 per cent on the second quarter. The company employs around 2,000 people worldwide.