Intel delays Ohio plant opening until 2030

Intel has announced a new postponement of the launch of its mega chip factory in Ohio. The first $28 billion fab won’t begin operations until 2030-2031 at the earliest, and the second won’t start until 2032. This is the third delay of the project, originally scheduled for 2025. Intel executive vice president Nagi Chandrasekaran said the company is choosing a “prudent approach” for financial stability, preserving the ability to accelerate construction when demand increases.

History of delays: from 2025 to 2030

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The construction of the Ohio plant has been plagued with problems from the start. In 2022, Intel postponed the groundbreaking ceremony due to a lack of state funding. The timeline was then pushed back to 2027-2028, and now it’s been pushed back another 3-4 years. In two years, the company has managed to invest $3.7 billion and completed the underground part of the first factory. Work is now underway on the above-ground structures, but the pace has slowed.

Why is Intel slowing down?

Chandrasekaran attributed the decision to the need to “manage capital responsibly” and adapt to customer demands. However, there is a deeper context behind it. Intel has faced record financial losses in the past, compounded by massive layoffs and the cancelation of development of its own AI chip. In parallel, the company is undergoing a change of strategy: after the departure of CEO Pat Gelsinger, the management is focusing on “simplifying” the product line and reallocating resources. Competition is also adding pressure: TSMC and Samsung are actively expanding their production capacities, intensifying the struggle for market share. In such conditions, slowing down the pace of construction looks like an attempt to reduce risks and maintain stability.

What does this mean for the market?”

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The rescheduling calls into question Intel’s ability to consolidate its position in the U.S., where the government is allocating billions to promote local chip manufacturing. Ohio was seen as a key project to reduce reliance on Asian suppliers. But the delays could increase investor skepticism, especially against the backdrop of TSMC’s successes in Arizona.

The delays could add to investors’ skepticism, especially amid TSMC’s successes in Arizona.

Despite the challenges, Intel emphasizes its willingness to complete the project. “We remain flexible to accelerate the work if necessary,” Chandrasekaran said. But in the face of stiff competition and internal reforms, the company will have to prove it can not only build factories but also win back the market’s trust.

At the same time, the company will have to prove it can not only build plants but also win back the market’s trust.

The story Intel delays Ohio plant opening until 2030 was first published on ITZine.ru.