Intel Pushes Ohio Chip Plant Opening to 2030-2031 Amid Industry Challenges

Intel Corporation has announced another significant delay in the construction timeline for its $28 billion semiconductor manufacturing project in Ohio. The company now expects the first of two planned factories to be completed in 2030 and begin operations between 2030 and 2031, with the second facility slated to start operations in 2032.

This latest setback represents a substantial shift from the original timeline, which anticipated the first plant opening in 2025. The project, known as Ohio One, broke ground in September 2022 and was hailed as a crucial step in establishing Ohio as a leading hub for advanced semiconductor manufacturing in the United States.

Despite the delays, Intel remains committed to the project. Naga Chandrasekaran, Executive Vice President and Chief Global Operations Officer at Intel, stated, "We 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". The company has made progress, completing the basement level and beginning work on the above-ground structure after more than 6.4 million work hours.

The delay comes amid broader challenges facing Intel, including financial struggles and shifts in market demand. The company has received significant support from the U.S. government, including $2.2 billion of the $7.8 billion allocated through the CHIPS Incentives Program, with at least $1.5 billion earmarked for the Ohio project.

While the delay is disappointing for stakeholders, Intel maintains that it will continue construction at a slower pace while retaining the flexibility to accelerate work if customer demand warrants. The company has already begun hiring and training workers for the Ohio campus, emphasizing its long-term commitment to the state.

As Intel navigates these challenges, the semiconductor industry and U.S. policymakers will be closely watching the progress of this significant project and its implications for America's position in global chip manufacturing.