Intel Corporation has announced yet another postponement in the anticipated launch of its semiconductor initiative located in central Ohio.
The technology company revealed on Friday that the first of its two semiconductor plants, commonly referred to as fabs, which are being established in New Albany, is now projected to be finished by 2030, with operations commencing sometime between 2030 and 2031. The second fabrication facility is expected to be completed by 2031, with plant operations starting in 2032.
This venture was initially announced by Intel in January 2022, and construction efforts began eight months after on the site situated in Licking County, just to the northeast of Columbus. The initial schedule set to start operations at the first plant in 2025 has been postponed due to financial issues, the exit of the CEO last December, alongside other challenges. Intel, which was once a key player in the semiconductor market, has been overshadowed by competing companies like Nvidia, which has secured a significant portion of the market for chips used in operating artificial intelligence systems.
“We are adopting a careful strategy to ensure that the project is completed in a financially sensible manner that bolsters Ohio One’s success well into the future,” shared Naga Chandrasekaran, the executive vice president, chief global operations officer, and general manager of Intel Foundry Manufacturing, in a communication on Intel’s website. “We continue construction at a reduced pace while retaining the ability to speed up the work and operational start if customer demand justifies it.”
Intel has procured $2.2 billion of the $7.8 billion allocated through the federal CHIPS Incentives Program. According to the U.S. Department of Commerce, at least $1.5 billion of this funding was earmarked for the New Albany project.
Dan Tierney, acting as a spokesperson for Republican Governor Mike DeWine, described the recent delays as a “disappointment,” though he stated the state still holds confidence in the potential of the project.
