Intel Corp. has announced a significant delay in the construction timeline of its $28 billion semiconductor fabrication plants in central Ohio. Initially set to begin production in 2025, the first of the two chip plants, known as fabs, will now not be operational until 2030 or 2031, while the second fab is expected to come online in 2032. The delay marks a major shift in Intel’s strategy as it aligns its investments with market demands and financial prudence.
Intel’s $28 Billion Ohio Project Faces Timeline Shift
The ambitious project, located in New Albany, Ohio, was originally expected to begin chip production in 2025. However, Intel first pushed the start date to 2027, and now, the company confirms that the first fab will not be operational until 2030 at the earliest. The second fab’s construction will wrap up by 2031, with operations starting in 2032.
Intel’s $28-billion investment includes the construction of 2.5 million square feet of buildings, featuring 600,000 square feet of cleanroom production space. Bechtel, the general contractor leading the project, has already overseen extensive site work, but the revised timeline reflects Intel’s more cautious approach to capital expenditures and market fluctuations.
Intel Cites Market Demand and Financial Responsibility
Intel’s executive vice president and chief global operations officer, Naga Chandrasekaran, addressed the delay in a message to employees, stating, “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.” The company emphasized that the revised timeline allows for financial prudence while ensuring long-term success.
CHIPS Act Funding and Government Involvement
Intel’s Ohio expansion is part of a broader U.S. semiconductor manufacturing push, supported by the CHIPS and Science Act. In November 2024, Intel finalized an agreement with the Biden administration for up to $7.86 billion in direct funding from the U.S. Department of Commerce. The funding supports Intel’s projects in Ohio, Arizona, New Mexico, and Oregon, reinforcing the company’s commitment to domestic semiconductor manufacturing.
However, the extended timeline coincides with reported efforts by Trump administration officials to renegotiate certain CHIPS Act funding agreements, adding uncertainty to the long-term landscape of semiconductor incentives.
Intel’s Progress So Far: Massive Investments and Workforce Impact
Despite the delay, Intel has already made significant progress on the site. By the end of 2024, the company reported spending $3.7 billion on the project. Construction crews have logged over 6.4 million work hours, and key milestones achieved include:
- 200,000 cubic yards of concrete placed
- 497,000 linear feet of underground conduit installed
- 98,700 linear feet of underground pipe laid
- 24,500 tons of rebar installed
The project has engaged numerous firms, including Bechtel, Barnhart Plant Services LLC, CTL Engineering Inc., Currie & Brown Inc., EMH&T Inc., Geotechnical Consultants Inc., Gilbane, Linde Engineering North America, Lithko Contracting LLC, MWH-Kokosing Joint Venture, and SSOE Group.
A Strategic Shift in the U.S. Semiconductor Race
The delay of Intel’s Ohio chip plant underscores the complexities of large-scale semiconductor manufacturing projects. With shifting market demand, ongoing negotiations over federal funding, and a competitive global chip landscape, Intel is making strategic adjustments to ensure long-term success in the U.S. semiconductor race. The coming years will be critical in determining how this delay affects Intel’s market position and broader U.S. chipmaking ambitions.
