Intel said on Friday that the opening of two chip-making plants (“fabs”) currently under construction in Ohio will be delayed until 2030 and 2031. The company had initially intended to open the first fab this year.
Naga Chandrasekaran, the head of global operations for Intel Foundry Manufacturing, said in a letter to employees that the company wanted to “align the start of production of our fabs with the needs of our business and broader market demand”.
He said the basement levels of the fabs had been completed and that work was underway on the above-ground structure.
But he said work would “continue at a slower pace, while maintaining the flexibility to accelerate work and the start of operations if customer demand warrants”, adding “but I want to be upfront and transparent with you all about our current plan”.
The company released a video in January 2025 showing progress on the $28bn Ohio One campus in Licking County, Ohio. So far, more than 6.4 million hours have been spent on installing underground pipes and pouring more than 200,000 cubic yards of concrete.
The company has said that it would take $100bn to fully develop the Ohio site, which will eventually cover 4 sq km.
Intel is attempting to recover from a disastrous 2024, during which its stock price halved, it shed 17,500 jobs and its revenue declined from $79bn to $54bn.
It has received significant support from the US government. Former president Joe Biden’s CHIPS and Science Act awarded the company a grant of about $8bn to boost the US semiconductor industry.
However, Intel’s weakened state has led to speculation that it may become an acquisition target. Taiwan Semiconductor Manufacturing Corporation, the world’s largest chip maker, has reportedly considered taking over some or all of Intel’s plants as part of an investor consortium or another structure.
Separately, US digital tech company Broadcom is reportedly looking into buying Intel’s chip-design and marketing business.
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