Embattled Intel Corp. has pushed back the opening of a $100 billion chip manufacturing facility in Ohio until 2030, at least five years after it was supposed to start production.
The prolonged delay is but the latest setback for Intel, which has hemorrhaged 60% of its market value as it slips behind NVIDIA Corp., AMD Inc., Arm and others in the artificial intelligence (AI) race.
The company, whose then-CEO Pat Gelsinger hosted former President Joe Biden at the site in 2022, said it won’t finish construction of its first plant at the sprawling facility until 2030, and that operations there would not begin until 2031 or 2032. A second plant should be completed in 2031 and start running the following year, according to Intel.
“As we continue to invest across our U.S. sites, it’s important that we align the start of production of our fabs with the needs of our business and broader market demand,” Naga Chandrasekaran, vice president and head of global operations officer for Intel Foundry Manufacturing, said in a statement. “This has always been our approach, as it allows us to manage our capital responsibly and adapt to the needs of our customers.”
The world’s leading semiconductor company, staggered by the worst single-day drop in its stock after it posted lackluster quarter results in August, was a primary benefactor from Biden’s CHIPS and Science Act in 2022. In November, the federal government awarded Intel a $7.9 billion grant to boost chip production on American soil.
But President Donald Trump and Republican lawmakers have threatened to end the act as Trump vows to slap tariffs on foreign production of computer chips and semiconductors to force the return of domestic chip manufacturing.
The facility in Ohio has been considered a crown jewel and essential piece of a corporate comeback for Intel, which is not only reeling from the stock selloff, but plans to shed 15% of its workforce and the firing of Gelsinger in December. The company continues to struggle to spark sales amid stiff competition.
