Intel’s plans to build two chip factories in New Albany, Ohio for an investment of more than $28 billion have been postponed. One of the plants was planned to be operable in 2025, according to The Wall Street Journal. The new timelines are:
- Ohio One Mod 1: Intel plans to complete construction in 2030 and begin operations between 2030 and 2031.
- Ohio One Mod 2: Intel plans to complete construction in 2031 and begin operations in 2032.
Why Intel extended the plants’ timelines
Naga Chandrasekaran, executive vice president, chief global operations officer and general manager of Intel Foundry Manufacturing, communicated these details to employees, and his message was shared in a press release.
The reasons Chandrasekaran provided for the extensions are “it’s important that we align the start of production of our fabs with the needs of our business and broader market demand,” allowing the company to “manage our capital responsibly and adapt to the needs of our customers.” He added, “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. We will continue construction at a slower pace, while maintaining the flexibility to accelerate work and the start of operations if customer demand warrants… .”
Intel announced this project in 2022 and said it would “help boost production to meet the surging demand for advanced semiconductors.” The plan also included creating 3,000 Intel jobs and 7,000 construction jobs. Bloomberg reported that Intel had ambitions to turn the Ohio site into the world’s largest semiconductor facility.
The Wall Street Journal noted that the project had already experienced delays, which Intel said was due to a slow chip market.
Market analysis and competitors in the chip market
According to Statista data, Intel’s semiconductor market revenue share worldwide in 2024 was 7.9%, which is a significant dip compared to 16.5% in 2011.
Looking at other companies in the chips space, semiconductor firm Arm announced on Feb. 13, 2025 that it may sell its own chips. NVIDIA H20 chip sales in China got a boost from interest in DeepSeek AI; however, some analysts say DeepSeek’s AI models give Chinese chipmakers an edge against NVIDIA. Also, it’s rumored that OpenAI wants to end its reliance on NVIDIA chips.
SEE: AI Surge Could Trigger Global Chip Shortage by 2026
A recent report by the Capgemini Research Institute found that only 26% of organizations that rely on chips feel their supply is sufficient, and those surveyed expect semiconductor demand to increase by 29% by the end 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 should be regarded as an American economic opportunity — the export of world-leading chips and technology services.”
