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The
struggling chipmaker announced Friday that construction on the
first of its two factories — known as fabs — planned for New
Albany is now expected to be completed in 2030 and begin
operations between then and 2031. Construction of the second fab
should be done in 2031 and operations should begin in 2032.
Intel announced the project in January 2022 and broke ground
eight months later at the site in Licking County, just northeast
of Columbus. The first plant initially was due to begin
operating in 2025, but the project has since been delayed by
financial concerns, the departure of its CEO last December and
other problems. The company was once a dominant force in the
semiconductor industry but has been eclipsed by rival Nvidia,
which has cornered the market for chips that run artificial
intelligence systems.
“We are taking a prudent approach to ensure we complete the
project in a financially responsible manner that sets up Ohio
One for success well into the future,” Naga Chandrasekaran, the
executive vice president, chief global operations officer and
general manager of Intel Foundry Manufacturing, stated in a
message posted on Intel's website. “We will continue
construction at a slower pace, while maintaining the flexibility
to accelerate work and the start of operations if customer
demand warrants.”
Intel has received $2.2 billion of the $7.8 billion in funding
it was due as part of the federal CHIPS Incentives Program. At
least $1.5 billion of that funding was set to go toward the New
Albany project, according to the U.S. Department of Commerce.
Dan Tierney, a spokesperson for Republican Gov. Mike DeWine,
called the latest delay a “disappointment" but said the state
remains confident in the project.
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