Intel’s ambitious $20 billion chip-manufacturing venture in Ohio is experiencing a shift in its construction timeline, the Wall Street Journal (WSJ) reported Thursday.
The delay was attributed to prevailing market challenges and a delay in the anticipated U.S. government financial support aimed at bolstering the nation’s semiconductor industry, according to WSJ. Initially slated to start chip production in 2025, the project’s facilities are now projected to reach completion by late 2026, with sources close to the development providing this updated schedule.
This adjustment reflects the dynamic nature of managing expansive projects within the semiconductor sector, where market trends and economic factors significantly influence operational timelines.
“Managing large-scale projects, especially in our industry often involves adapting to changing timelines,” an Intel spokesman said, according to WSJ. “Our decisions are based on business conditions, market dynamics, and being responsible stewards of capital.”(RELATED: GOP Senator Blocks Biden EPA Nominees Over Energy Project Delays)
Intel is delaying the construction timetable for its $20 billion chip-manufacturing project in Ohio amid market challenges and the slow rollout of U.S. government grant money to grow the domestic industry https://t.co/0qQwSCvSfZ https://t.co/0qQwSCvSfZ
— The Wall Street Journal (@WSJ) February 2, 2024
The Ohio project has been heralded as a significant stride toward enhancing domestic chip manufacturing capabilities. It has garnered attention for its potential to inject vitality into the local economy and reinforce national security through reduced dependency on overseas production, the outlet reported.
The site, located northeast of Columbus, currently employs around 800 workers, with expectations to scale up the workforce to several thousand by year-end, contributing to the creation of approximately 7,000 construction jobs.
Intel’s vision for the Ohio complex extends to a potential $100 billion investment, making it one of the most substantial initiatives underpinning the U.S. administration’s drive to revitalize the domestic semiconductor landscape, WSJ noted. This endeavor aligns with the broader objectives of the CHIPS Act, which earmarked $53 billion in incentives for the industry, although significant grants are yet to be distributed. The delay in Intel’s project mirrors similar postponements by other industry giants, like Taiwan Semiconductor Manufacturing Co.