Compaq's key Irish operation was the site of anti-war demonstrations last week following claims that the company has been illegally exporting software used in the development and maintenance of US and French nuclear weapons programmes.
The company has been accused of contravening European export laws, and Ireland's Department of Enterprise has launched an official enquiry into the allegations.
It has asked Compaq to clarify what work it is carrying out within its High Performance Technical Computing (HPTC) group, as well as the end use of the software and the nature of its exports.
HPTC, which was unaffected by the Compaq/Hewlett Packard (HP) merger this year, is responsible for building tailor-made supercomputers, including operating software, for the US and French nuclear weapons programmes. The systems are used for the simulated testing of nuclear weapons.
The allegations, made in the Irish Examiner newspaper, sparked widespread condemnation from groups that believe it makes a mockery of Ireland's neutral status.
Amnesty International claimed that the allegations also call into question the reliability of Ireland's military export control system.
Just days after the story appeared, anti-nuclear protesters dressed as weapons inspectors marched on the HTPC plant in Galway.
HP said in a statement: "HP can confirm that its subsidiary operation, the Compaq Computer International BV in Galway, is assisting the Department of Enterprise fully."
If the group is found to have contravened European export laws, Compaq will lose its funding from the Irish Development Authority, the group responsible for making Ireland such an attractive location for large multinational companies.
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