Dive Brief:
- Intel is once again pushing back its project timeline for two semiconductor plants in New Albany, Ohio, this time to 2030 and 2031, according to a memo sent to employees Friday.
- The chip manufacturer’s Mod 1 and Mod 2 fabrication facilities were previously expected to be ready by the end of 2026, but the project’s timeline was extended to ensure completion in a “financially responsible manner,” the memo says.
- Despite the slow progress, Intel has already started hiring and training people for the slated campus, with the memo saying “in no way does this diminish our long-term commitment to Ohio.” A prior release said the project would create 3,000 Intel jobs and 7,000 construction jobs over the course of the build.
Dive Insight:
The $28 billion Ohio One project, which initially broke ground in September 2022, is part of Intel’s long-awaited effort to make the state one of the leading hubs for advanced semiconductor manufacturing.
At the time, the Biden administration touted Intel’s investment as a boon for the U.S. industry following the passage of the CHIPS and Science Act, which has provided billions of dollars in incentives to chipmakers for project funding. However, action on the project has been slow, with multiple delays due in part to changing corporate strategy, market dynamics and limited capital.
Intel received nearly $8 billion in CHIPS funding to support its fabrication expansion in Arizona, New Mexico and Oregon, with $1.5 billion going directly to its Ohio One project in November 2024, two years after the project’s groundbreaking.
“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, EVP, chief global operations officer and general manager of Intel Foundry Manufacturing, said in Friday’s memo.
After more than 6.4 million work hours on the project, installing underground pipes and pouring 200,000 cubic yards of concrete, Intel completed the basement level of the project last quarter with work on the above-ground structure underway, according to the employee note.
“We will continue construction at a slower pace, while maintaining the flexibility to accelerate work and the start of operations if customer demand warrants,” Chandrasekaran said.
