Valeo is to invest €44m in a major RD&I investment programme at its plant in Tuam, Co Galway, which will create 50 new jobs over the next three years.
The company said the investment will build on its capabilities in Advanced Driver Assistance Systems (ADAS).
The 50 new jobs will see Valeo's Irish research and development centre grow to over 500 people and become one of the largest R&D facilities in Ireland.
The project is supported by IDA Ireland.
Valeo is a major employer in the West region, with a total workforce of over 1,000 people.
Its R&D centre in Tuam is the group's worldwide reference centre for vision systems.
Products developed by the R&D centre in Tuam are in production across the world at Valeo sites in Germany, Hungary, Mexico and China.
IDA Ireland's CEO Martin Shanahan said the new investment was an exciting project, focused on new emerging and disruptive advances in Autonomous Vehicles.
"As a technology leader in autonomous technologies, with a global remit, Valeo is helping in the development of a cluster in Ireland around AV. This project will add significant value to the company's operations in Tuam and will benefit Tuam, Galway and the West region substantially," he added.
The Minister of State for Rural Affairs & Natural Resources Sean Canney said the investment shows that global companies like Valeo can find, in regional locations, the skilled workers they require, the necessary infrastructure and services and pro-business environment, to establish and grow their operations.
The company had 186 plants, 21 research centres, 38 development centres and 15 distribution platforms around the world with a workforce of 113,600 people in 33 countries.