{"id":235,"date":"2025-03-01T17:28:48","date_gmt":"2025-03-01T17:28:48","guid":{"rendered":"https:\/\/www.techrepublic.com\/?p=4294383"},"modified":"2025-03-01T17:28:48","modified_gmt":"2025-03-01T17:28:48","slug":"intel-delays-28b-chip-plants-in-ohio-for-at-least-5-years-to-manage-our-capital-responsibly","status":"publish","type":"post","link":"https:\/\/blog.tecnoartesanos.com\/index.php\/2025\/03\/01\/intel-delays-28b-chip-plants-in-ohio-for-at-least-5-years-to-manage-our-capital-responsibly\/","title":{"rendered":"Intel Delays $28B+ Chip Plants in Ohio for at Least 5 Years to \u201cManage Our Capital Responsibly\u201d"},"content":{"rendered":"<figure id=\"attachment_4294385\" aria-describedby=\"caption-attachment-4294385\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4294385\" src=\"https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1.jpg\" alt=\"Image of Intel's manufacturing fab campus in Ohio when completed.\" width=\"1400\" height=\"788\" srcset=\"https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1.jpg 1400w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-300x169.jpg 300w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-1024x576.jpg 1024w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-768x432.jpg 768w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-50x28.jpg 50w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-770x433.jpg 770w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-370x208.jpg 370w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-270x152.jpg 270w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-740x417.jpg 740w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-540x304.jpg 540w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-1110x625.jpg 1110w, https:\/\/assets.techrepublic.com\/uploads\/2025\/03\/intel-manufacturing-fab-feat-16x9-1-810x456.jpg 810w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\"><figcaption id=\"caption-attachment-4294385\" class=\"wp-caption-text\">Intel\u2019s fab of the chip factories campus it\u2019s building in New Albany, Ohio. Image: Intel<\/figcaption><\/figure>\n<p>Intel\u2019s 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 planned to be operable in 2025, according to The Wall Street Journal. The new timelines are:<\/p>\n<ul>\n<li aria-level=\"1\"><b>Ohio One Mod 1:<\/b> Intel plans to complete construction in 2030 and begin operations between 2030 and 2031.<\/li>\n<li aria-level=\"1\"><b>Ohio One Mod 2:<\/b> Intel plans to complete construction in 2031 and begin operations in 2032.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_Intel_extended_the_plants_timelines\"><\/span>Why Intel extended the plants\u2019 timelines<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Naga Chandrasekaran, executive vice president, chief global operations officer and general manager of Intel Foundry Manufacturing, communicated these details to employees, and his message was shared in a press release.<\/p>\n<p>The reasons Chandrasekaran provided for the extensions are \u201cit\u2019s important that we align the start of production of our fabs with the needs of our business and broader market demand,\u201d allowing the company to \u201c\u200b\u200bmanage our capital responsibly and adapt to the needs of our customers.\u201d He added, \u201cWe 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. We will continue construction at a slower pace, while maintaining the flexibility to accelerate work and the start of operations if customer demand warrants\u2026 .\u201d<\/p>\n<p>Intel announced this project in 2022 and said it would \u201chelp boost production to meet the surging demand for advanced semiconductors.\u201d The plan also included creating 3,000 Intel jobs and 7,000 construction jobs. Bloomberg reported that Intel had ambitions to turn the Ohio site into the world\u2019s largest semiconductor facility.<\/p>\n<p>The Wall Street Journal noted that the project had already experienced delays, which Intel said was due to a slow chip market.<\/p>\n<aside class=\"pinbox right\">\n<h3 class=\"heading\">More about Innovation<\/h3>\n<\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Market_analysis_and_competitors_in_the_chip_market\"><\/span>Market analysis and competitors in the chip market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to Statista data, <a href=\"https:\/\/www.statista.com\/statistics\/294804\/semiconductor-revenue-of-intel-worldwide-market-share\/\" target=\"_blank\" rel=\"noopener\">Intel\u2019s semiconductor market revenue share worldwide<\/a> in 2024 was 7.9%, which is a significant dip compared to 16.5% in 2011.<\/p>\n<p>Looking at other companies in the chips space, <a href=\"https:\/\/www.techrepublic.com\/article\/arm-cpu-qualcomm-nvidia\/\">semiconductor firm Arm<\/a> announced on Feb. 13, 2025 that it may sell its own chips. <a href=\"https:\/\/www.eweek.com\/news\/deepseek-ai-models-nvidia-h20-chips\/\">NVIDIA H20 chip sales in China<\/a> got a boost from interest in DeepSeek AI; however, some analysts say DeepSeek\u2019s AI models give Chinese chipmakers an edge against NVIDIA. Also, it\u2019s rumored that <a href=\"https:\/\/www.eweek.com\/news\/openai-custom-processor-ai\/\">OpenAI wants to end its reliance on NVIDIA chips<\/a>.<\/p>\n<p><strong>SEE: <a href=\"https:\/\/www.techrepublic.com\/article\/ai-chip-shortage-global-supply-crisis\/\">AI Surge Could Trigger Global Chip Shortage by 2026<\/a><\/strong><\/p>\n<p>A recent report by the Capgemini Research Institute found that only 26% of organizations that rely on <a href=\"https:\/\/www.techrepublic.com\/article\/capgemini-chip-supply-shortage\/\">chips feel their supply is sufficient<\/a>, and those surveyed expect semiconductor demand to increase by 29% by the end of 2026.<\/p>\n<p>Microsoft President and Vice Chair Brad Smith wrote this week about his <a href=\"https:\/\/www.eweek.com\/news\/microsoft-president-brad-smith-criticizes-ai-diffusion-rule\/\">criticisms of the US AI Diffusion Rule<\/a> that it \u201cdiscourages what should be regarded as an American economic opportunity \u2014 the export of world-leading chips and technology services.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Intel\u2019s fab of the chip factories campus it\u2019s building in New Albany, Ohio. Image: Intel Intel\u2019s 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 planned to be operable in 2025, according to The Wall Street Journal. The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":236,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-235","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Intel Delays $28B+ Chip Plants in Ohio for at Least 5 Years to \u201cManage Our Capital Responsibly\u201d - TecnoArtesanos Tech Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.tecnoartesanos.com\/index.php\/2025\/03\/01\/intel-delays-28b-chip-plants-in-ohio-for-at-least-5-years-to-manage-our-capital-responsibly\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Intel Delays $28B+ Chip Plants in Ohio for at Least 5 Years to \u201cManage Our Capital Responsibly\u201d - TecnoArtesanos Tech Blog\" \/>\n<meta property=\"og:description\" content=\"Intel\u2019s fab of the chip factories campus it\u2019s building in New Albany, Ohio. 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