Intel has announced further delays to its highly anticipated $28 billion chip fabrication plants in Ohio, pushing the expected completion date of the first factory to 2030. The struggling semiconductor giant originally planned to have the facility in New Albany operational by the mid-2020s, but financial constraints and shifting market dynamics have forced the company to revise its timeline.
The first factory is now expected to begin operations sometime between 2030 and 2031, extending the initial schedule by at least five years. This delay comes as Intel struggles to regain its footing in the global semiconductor market while attempting to transform into a leading contract chip manufacturer.
Intel’s ambitious foundry business model, which aims to manufacture chips for other companies, has put significant strain on its financial health. The company has been aggressively cutting capital expenditures in an effort to stabilize its balance sheet and align factory operations with market demand.
Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, addressed the delays in a message to employees that was later shared in a company press release. “The changes were made so Intel can align its factory operation with market demand and manage capital responsibly,” he stated.
The Ohio semiconductor plants were announced in 2022 as part of Intel’s plan to expand its manufacturing footprint in the United States and reduce reliance on Asian supply chains. The project was also expected to benefit from the U.S. CHIPS Act, which provides funding to boost domestic semiconductor production. However, Intel’s financial struggles, combined with market shifts and increased competition, have hampered its aggressive expansion strategy.
Despite the setbacks, Intel insists that the Ohio project remains a critical part of its long-term vision. The company has already invested in infrastructure and land acquisition for the site, signaling its commitment to completing the facilities.
The delay is a blow to the region’s economic aspirations, as the project was projected to create thousands of jobs and establish Ohio as a key player in the semiconductor industry. As Intel recalibrates its strategy, industry analysts will be closely watching how the company navigates the evolving landscape of chip manufacturing.
