Intel Corp. has once again postponed the anticipated commencement of its semiconductor venture in central Ohio. The beleaguered chipmaker revealed on Friday that the construction of the first of its two planned factories – referred to as fabs – in New Albany is now slated for completion in 2030, with operations expected to commence between 2030 and 2031. The construction of the second fab is projected to be finalized by 2031, with operations set to begin in 2032.
The announcement of the project by Intel was made in January 2022, followed by the groundbreaking ceremony eight months later at the location in Licking County, situated just northeast of Columbus. Originally scheduled to become operational in 2025, the first plant’s timeline has been marred by financial uncertainties, the departure of its CEO in December of the same year, and various other challenges. While Intel was once a dominant player in the semiconductor industry, it has now been overshadowed by its competitor Nvidia, which has established a stronghold in the market for chips powering artificial intelligence systems.
Naga Chandrasekaran, the executive vice president, chief global operations officer, and general manager of Intel Foundry Manufacturing, conveyed in a statement posted on Intel’s website, “We are adopting a cautious approach to ensure the successful completion of the project in a financially prudent manner that positions Ohio One for sustained success in the long run. We intend to proceed with the construction at a measured pace, while retaining the flexibility to expedite the work and the commencement of operations in response to customer demand.”
To date, Intel has secured $2.2 billion out of the total $7.8 billion in funding earmarked as part of the federal CHIPS Incentives Program. A minimum of $1.5 billion of this funding was designated for the New Albany project, according to the U.S. Department of Commerce.
Dan Tierney, spokesperson for Republican Governor Mike DeWine, described the recent delay as a “disheartening setback,” while emphasizing the state’s continued confidence in the project.
