Intel delays the $28 billion Ohio chip factory project, pushing production to 2030. The move comes as the company faces financial struggles and industry competition.
 |
| Intel delays its $28 billion chip factory project in Ohio until 2030, citing market demand concerns and ongoing financial challenges. Image: ChicHue |
San Francisco, USA — March 1, 2025:
Intel has announced a significant delay in its $28 billion chip factory project in Ohio, with production now slated to begin in 2030 instead of the originally planned 2025. The decision follows Intel’s struggles with aligning production schedules to market demand and adjusting its business strategy amid ongoing financial difficulties, reports BI citing the Fly.
Naga Chandrasekaran, Intel's Foundry Manufacturing general manager, explained that while construction will continue at a slower pace, the company remains flexible to accelerate work should customer demand rise. This cautious approach comes after Intel recorded a staggering $18.8 billion net loss for 2024, as the company grapples with a competitive chip market.
Intel, once a leader in semiconductor production, now faces intense competition from Asian manufacturers like TSMC and Samsung, who have taken a dominant position in the made-to-order semiconductor market. Additionally, the rise of Nvidia as a top player in AI chips has posed another challenge to Intel’s dominance.
This delay also follows a series of management and strategic changes at Intel. In December, CEO Pat Gelsinger was ousted after losing the board’s confidence in his turnaround plan. The company also announced plans to lay off more than 15,000 employees and delay or pause several key projects, including its factory plans in Europe and Malaysia.
While Intel continues to face challenges, it received a $7.9 billion subsidy from the Biden administration to support its efforts to bring chip manufacturing back to the U.S. However, Intel’s global expansion plans have been significantly scaled back, including delays in its chip-making factories in Germany and Poland.