Intel delays $28 billion Ohio chip factory to 2030 amid financial challenges

Intel’s big bet on chipmaking in Ohio is facing yet another setback. The company has delayed the completion of its first semiconductor factory to 2030—five years later than originally planned, local media outlet The Columbus Dispatch reported on Friday. The second factory won’t be up and running until at least 2032.

According to the report, Intel’s promised $28 billion chip fabrication plants in New Albany, Ohio, will not be completed until 2030. Intel now expects its first Ohio semiconductor factory to be completed in 2030, with production starting soon after, likely in 2030 or 2031. The shifting timeline underscores the ongoing uncertainty surrounding the project despite the company’s continued commitment.

“Intel has delayed the opening of its first Ohio semiconductor factory to 2030. The delay was attributed to financial struggles and a need to align chip production with market demand,” The Columbus Dispatch reported.

This isn’t the first time the project timeline has been pushed back. Intel had initially planned to start production in 2025, but market shifts, financial struggles, and efforts to align investments with demand have led to repeated delays.

Balancing Costs and Market Realities

The semiconductor giant has been cutting spending after an expensive push into contract manufacturing strained its balance sheet. “The changes were made so Intel can align its factory operations with market demand and better manage capital responsibly,” said Naga Chandrasekaran, the company’s executive vice president and general manager of Foundry Manufacturing, in a message to employees.

The decision comes as Intel works through a massive restructuring plan. Last year, the company laid off 15% of its workforce and slashed its dividend to rein in costs. At the same time, it’s still securing funding for its manufacturing push, having received $2.2 billion from the federal CHIPS Act, with $1.5 billion set aside for the Ohio project.

In December, Intel CEO Pat Gelsinger also stepped down just a week after the chipmaker received $8 billion from the Biden administration.  The announcement came less than four years into his tenure, leaving the company grappling with a high-stakes turnaround plan.

Mixed Reactions from State Leaders

The delays aren’t sitting well with Ohio officials, though they’re still confident Intel will follow through. Dan Tierney, a spokesperson for Governor Mike DeWine, called the setback “disappointing” but said Intel has reiterated its long-term commitment. “Obviously, we’d like to have the plants open earlier rather than later, but we have every indication from Intel that they will open these plants in Ohio and that this is part of their long-term strategy,” he said.

U.S. Senator Jon Husted, who helped secure the project for Ohio, echoed that sentiment. “The market and geopolitical events can always impact the timing,” he said. “But with over $6 billion already invested in this site, it’s going to happen.”

JobsOhio, the state’s private economic development group, is sticking with Intel. “Although Intel’s timeline has moved to address market realities, the commitment to creating at least 3,000 jobs and $20 billion in capital investment while continuing construction of its most advanced chip production fabs on Earth in Ohio remains unchanged,” said spokesperson Matt Englehart.

Local Impact and Next Steps

Despite the delays, construction is still moving forward—just at a slower pace. Intel says it can speed things up if demand picks up, but for now, the project will take longer than expected.

The announcement has left local businesses and educational institutions in a holding pattern. Intel has been investing in workforce training, putting $17.7 million into Ohio colleges to prepare students for jobs at the factory. Kenny McDonald, CEO of One Columbus, hopes those efforts continue. “This is a long-term play, and I encourage our local institutions to stay the course,” he said.

Meanwhile, Intel is still pouring money into the site. Construction crews have already poured 200,000 cubic yards of concrete, and more than 20 cranes are active on-site. “Projects of this scale and complexity always come with twists and turns along the way,” said Chandrasekaran. “But the end state is one we will all be proud of for decades to come.”