Intel has announced a significant delay in its $28 billion semiconductor manufacturing project in New Albany, Ohio. Originally slated to commence operations in 2025, the first of two chip fabrication plants is now projected to be completed by 2030, with production starting between 2030 and 2031. The second facility is expected to follow, becoming operational by 2032.
This postponement is attributed to Intel’s strategic decision to align its manufacturing capabilities with current market demand and to manage capital expenditures prudently. Naga Chandrasekaran, Intel’s Executive Vice President, emphasized the company’s commitment to financial responsibility, stating that construction will continue at a moderated pace, with flexibility to accelerate if customer demand increases.
The Ohio project, announced in 2022, was initially part of Intel’s ambitious expansion to bolster domestic chip production amid global semiconductor shortages. Despite the delays, Intel has invested $3.7 billion in the project to date, completing foundational work and progressing to above-ground construction.
This development occurs in the context of Intel’s broader financial challenges over the past year, including workforce reductions, suspension of dividends, and a focus on cost-saving measures. The company aims to maintain operating expenses around $17.5 billion for 2025.
Local officials remain optimistic about the project’s future impact on the region’s economy, anticipating significant job creation and investment once the facilities become operational.