Intel’s plans to construct two chip factories in New Albany, Ohio for an funding of greater than $28 billion have been postponed. One of many crops was deliberate to be operable in 2025, based on The Wall Road Journal. The brand new timelines are:
- Ohio One Mod 1: Intel plans to finish building in 2030 and start operations between 2030 and 2031.
- Ohio One Mod 2: Intel plans to finish building in 2031 and start operations in 2032.
Why Intel prolonged the crops’ timelines
Naga Chandrasekaran, government vp, chief international operations officer and normal supervisor of Intel Foundry Manufacturing, communicated these particulars to staff, and his message was shared in a press launch.
The explanations Chandrasekaran offered for the extensions are “it’s necessary that we align the beginning of manufacturing of our fabs with the wants of our enterprise and broader market demand,” permitting the corporate to “handle our capital responsibly and adapt to the wants of our clients.” He added, “We’re taking a prudent strategy to make sure we full the undertaking in a financially accountable method that units up Ohio One for achievement effectively into the long run. We’ll proceed building at a slower tempo, whereas sustaining the pliability to speed up work and the beginning of operations if buyer demand warrants… .”
Intel introduced this undertaking in 2022 and mentioned it might “assist increase manufacturing to satisfy the surging demand for superior semiconductors.” The plan additionally included creating 3,000 Intel jobs and seven,000 building jobs. Bloomberg reported that Intel had ambitions to show the Ohio web site into the world’s largest semiconductor facility.
The Wall Road Journal famous that the undertaking had already skilled delays, which Intel mentioned was resulting from a gradual chip market.
Market evaluation and rivals within the chip market
In accordance with Statista knowledge, Intel’s semiconductor market income share worldwide in 2024 was 7.9%, which is a major dip in comparison with 16.5% in 2011.
Taking a look at different firms within the chips house, semiconductor agency Arm introduced on Feb. 13, 2025 that it might promote its personal chips. NVIDIA H20 chip gross sales in China obtained a lift from curiosity in DeepSeek AI; nevertheless, some analysts say DeepSeek’s AI fashions give Chinese language chipmakers an edge towards NVIDIA. Additionally, it’s rumored that OpenAI desires to finish its reliance on NVIDIA chips.
SEE: AI Surge May Set off World Chip Scarcity by 2026
A current report by the Capgemini Analysis Institute discovered that solely 26% of organizations that depend on chips really feel their provide is adequate, and people surveyed count on semiconductor demand to extend by 29% by the top of 2026.
Microsoft President and Vice Chair Brad Smith wrote this week about his criticisms of the US AI Diffusion Rule that it “discourages what must be thought to be an American financial alternative — the export of world-leading chips and know-how companies.”
