Intel’s plans to build two chip factories in New Albany, Ohio for an investment of more than $ 28 billion, have been postponed. One of the plants was scheduled to be opera in 2025, according to the Wall Street Journal. The new timelines are:
- Ohio One Mod 1: Intel plans to complete the construction in 2030 and begin operations between 2030 and 2031.
- Ohio One Mod 2: Intel plans to complete the construction in 2031 and begin operations in 2032.
Why Intel expanded the plants’ timelines
Naga Chandraskaran, CEO Vice President, Chief Global Operations Officer and General Manager of Intel Foundry Manufacturing, conveyed these details to the employees and his message was shared in a press release.
The reasons why Chandrasekaran provided the extensions is “It is important that we adapt the start of the production of our Fabs with the needs of our business and wider market demand” that allows the company to “manage our capital responsibly and adapt to our customers’ needs.” He added, “We are taking a cautious approach to make sure we end the project in a financially responsible way that sets Ohio up to success well into the future. We will continue the construction at a slower pace, while maintaining the flexibility to speed up work and start of operation if the customer’s demand guarantees…. “
Intel announced this project in 2022 and said it would “help increase production to meet the rising demand for advanced semiconductors.” The plan also included creating 3,000 Intel jobs and 7,000 construction tasks. Bloomberg reported that Intel had ambitions to turn the Ohio site into the world’s largest semiconductor facility.
The Wall Street Journal noted that the project had already experienced delays that Intel said was due to a slow chip market.
Market Analysis and Competitors in the Chip Market
According to Statista -Data, Intel’s Semiconductor Market Market Income share around the world in 2024 was 7.9%, which is a significant dip compared to 16.5% in 2011.
Looking at other companies in the chips room, the semiconductor company Arm announced on February 13, 2025, it can sell its own chips. Nvidia H20 Chip Sales in China got a boost from the interest in Deepseek AI; However, some analysts say Deepseeks AI models give Chinese chipmakers an edge against Nvidia. It was also frightened that Openai wants to end his addiction to NVIDIA chips.
See: Ai Surge could trigger Global Chip deficiency by 2026
A recent Capgemini Research Institute report found that only 26% of organizations dependent on chips feel that their supply is sufficient and the respondents expect the semiconductor’s demand to rise by 29% by the end of 2026.
Microsoft President and Vice-President Brad Smith wrote this week about his criticism of the US AI diffusion rule that it “discourages what should be considered an American economic opportunity export of world-leading chips and technology services.”