Intel was originally supposed to start chip production in its Ohio factory this year. However, the site is facing another major delay, meaning it will not begin until 2030.

Intel announced the setback in a Friday letter to employees, which it also posted online. The chipmaker suggests it doesn’t need the factories yet and wants to avoid unnecessary spending.

“It’s important that we align the start of production of our fabs with the needs of our business and broader market demand,” says Intel Chief Global Operations Officer Naga Chandrasekaran. “This has always been our approach, as it allows us to manage our capital responsibly and adapt to the needs of our customers.”

As a result, the company is revising the timeline for its two state-of-the-art chip fabs at the Ohio site, where Intel plans on investing more than $28 billion. “Specifically, we now plan to complete construction of Mod 1 in 2030 and begin operations between 2030 and 2031. For Mod 2, we expect to complete construction in 2031 and begin operations in 2032,” Chandrasekaran says.

The news is a blow to Intel and overall efforts to boost US chip manufacturing, which has included subsidizing the company’s factories across the US. Intel announced the New Albany, Ohio, factory in 2022, when the country faced a historic chip shortage, and the company was making a new push into the foundry business.

Although the demand for cutting-edge semiconductors persists, especially for AI, many companies, including Nvidia, Apple, and AMD, are tapping Intel’s rival, TSMC, to build their processors. Last year, Intel also delayed the Ohio factory from 2025 to 2027 amid rumors that waning chip demand, especially in PCs, was partly to blame.

Despite Friday’s announcement, Intel is leaving the door open to move up the factory’s completion — if customer orders pick up. “We will continue construction at a slower pace while maintaining the flexibility to accelerate work and the start of operations if customer demand warrants, but I want to be up-front and transparent with you all about our current plan,” Chandrasekaran says.

Intel has been trying to drum up interest in its foundry services with the coming launch of the company’s 18A process, which has been developed at Intel facilities in Arizona and Oregon. President Trump is also preparing to tariff foreign-made chips, including those from TSMC. So, the White House’s trade policy might tip the scales and bring more customers to Intel. In the meantime, the company has already secured deals with Arm, Amazon AWS, and Microsoft to use the 18A process to build future chips.

By: DocMemory
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