Intel Delays US$28 Billion Ohio Chip Factories to 2030

Intel has pushed back the completion of its USD 28 billion chip fabrication plants in Ohio, with the first factory in New Albany now expected to be finished by 2030, the company announced on Friday.

Credit: INTEL

Operations at the first factory will begin between 2030 and 2031, extending the original timeline by at least five years. The second factory will complete construction in 2031 and start running in 2032.

The delay comes as Intel cuts capital expenses following its costly attempt to become a contract chip manufacturer. The company said the changes align its factory operations with market demand while ensuring financial responsibility.

"We are taking a prudent approach to ensure we complete the project in a financially responsible manner," said Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, in a message to employees shared in a press release.

Intel shares initially rose more than 5% following the announcement but later pared gains to trade about 1% higher.

The Columbus Dispatch first reported the delays earlier on Friday.

Last year, Intel laid off 15% of its workforce, suspended dividends, and launched a cost-saving plan that included significant cuts to capital expenditure. Chief Financial Officer David Zinsner said last month that the company aims to keep operating expenses at approximately USD 17.5 billion for 2025.

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• Intel's first Ohio chip factory is now expected to be completed by 2030, with operations starting between 2030 and 2031.

• The second factory will finish construction in 2031 and begin operations in 2032.

• The delay follows Intel's efforts to cut capital expenses and align operations with market demand.

Source: REUTERS