Inter’s big bet on Ohio chipmaking faces yet another set-off. The company postponed the completion of its first semiconductor factory until 2030. This is a local media outlet reported by the Columbus Dispatch on Friday, five years later than originally planned. The second factory is not in operation until at least 2032.
Intel will not complete its $28 billion chip manufacturing plant in New Albany, Ohio until 2030, according to the report. Intel expects its first Ohio semiconductor factory to begin production in 2030 or 2031.
“Intel delayed opening its first Ohio semiconductor factory in 2030. This delay was attributed to financial struggles and the need to tailor chip production to market demand,” reported Columbus Dispatch.
This is not the first time that a project’s timeline has been pushed back. Intel was originally scheduled to start production in 2025, but market changes, financial struggles and efforts to match investments to demand have led to repeated delays.
Balance between costs and market reality
The semiconductor giant is cutting spending after expensive pushes on the balance sheets to manufacture contracts. “The change allows for better management of capital responsibly by adjusting factory operations to market demand,” Naga Chandrasekaran, executive vice president and general manager of Foundry Manufacturing, said in a message to employees.
This decision comes as Intel works through a massive restructuring plan. Last year, the company fired 15% of its workforce and cut dividends to keep costs down. At the same time, it has received $2.2 billion from the federal chips law, as it has set aside $1.5 billion for the Ohio project, securing funds for the manufacturing push.
In December, Intel CEO Pat Gelsinger also resigned a week after the chipmaker received $8 billion from the Biden administration. The announcement is less than four years since his tenure, and the company is working on a high stakes turnaround plan.
Mixed responses from state leaders
The delay doesn’t sit well with Ohio officials, but they’re sure Inter will still be there. Dan Tierney, a spokesman for Gov. Mike DeWine, called the set-off “disappointment,” but said Inter had repeated its long-term commitment. “Obviously, we want the plants to open earlier than later, but there are all the indications from Intel that opening these plants in Ohio and that this is part of their long-term strategy,” he said.
The sentiment was repeated for US Senator John, who helped secure the Ohio project. “Market and geopolitical events can always have an impact on timing,” he said. “But that’s going to happen because more than $6 billion has already been invested in this site.”
Jobsohio, the state’s private economic development group, is sticking to Intel. “Although Intel’s timeline has moved to deal with market realities, our commitment to creating at least 3,000 jobs and $20 billion in capital investment while continuing to build Ohio’s most sophisticated chip-producing fab on the planet,” said spokesman Matt Englehart.
Local impact and next steps
Despite the delays, construction is still moving forward. Intel says it can speed things up if demand recovers, but for now the project will take longer than expected.
The announcement has put local businesses and educational institutions in a retention pattern. Intel is investing in workforce training and is putting $17.7 million at Ohio University to prepare students for work in the factory. Kenny McDonald, CEO of One Columbus, hopes that these efforts will continue. “This is a long-term play and I would recommend that local institutions keep the course,” he said.
Meanwhile, Intel is still putting money on the site. The construction crew has already poured 200,000 cubic yards of concrete, with over 20 cranes operating on the site. “This scale and complexity project always has a twist and turns along the way,” says Chandrasekaran. “But the end state is something we all are proud of for the next decades.”
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