Intel's plans to build two chips factories in New Albany, Ohio, for an investment of more than $ 28 billion have postponed. It was planned that one of the plants was operable in 2025, according to the Wall Street Journal. The new deadlines are:
- Ohio One Mod 1: Intel plans to complete the construction in 2030 and start operations between 2030 and 2031.
- Ohio One Mod 2: Intel plans to complete the construction in 2031 and start operations in 2032.
Why Intel extended plants' deadlines
Naga Chandrasekaran, Executive Vice President, Director of Global Operations and General Manager of Intel Foundry Manufacturing, communicated these details to the employees, and their message was shared in a press release.
The reasons why Chandrasekaran provided the extensions are “it is important that we align the beginning of the production of our manufacturers with the needs of our business and a broader demand in the market”, which allows the company to “manage our capital in a responsible manner and adapt to the needs of our customers.” He added: “We are adopting a prudent approach to ensure that we complete the project in a financially responsible way that establishes Ohio for the success in the future. We will continue the construction at a slower pace, while we maintain flexibility to accelerate work and the start of operations if customer demand guarantees … “.
Intel announced this project in 2022 and said that “it would help boost production to meet the growing demand for advanced semiconductors.” The plan also included the creation of 3,000 Intel jobs and 7,000 construction jobs. Bloomberg reported that Intel had ambitions to convert the Ohio site into the largest semiconductor installation in the world.
The Wall Street Journal said the project had already experienced delays, which according to Intel was due to a slow chips market.
Market analysis and competitors in the chips market
According to statista data, the participation of Intel semiconductor market revenues worldwide in 2024 was 7.9%, which is a significant fall compared to 16.5% in 2011.
Looking at other companies in the Chips space, the ARM semiconductor firm announced on February 13, 2025 that it can sell its own chips. Nvidia H20 Chips sales in China obtained an impulse of interest in Deepseek AI; However, some analysts say that Depseek's models give Chinese chip manufacturers an advantage against Nvidia. In addition, it is rumored that Operai wants to end its dependence on the Nvidia chips.
See: AI arises could trigger the shortage of global chips by 2026
A recent report from the Capgemini Research Institute found that only 26% of organizations that depend on chips feel that their supply is sufficient, and respondents expect the demand for semiconductors to increase by 29% at the end of 2026.
The president and vice president of Microsoft, Brad Smith, wrote this week about his criticisms of the dissemination rule of the AI of the United States that “discourages what should be considered as an American economic opportunity: the export of chips and leading technological services in the world.”
