Intel is once again slowing down construction of its planned microchip factories in Ohio, the company announced.
While the first factory was initially expected to open in 2025, Intel previously pushed that timeline to 2030 or 2031, and now says construction will slow further to align with market demand.
CEO Lip-Bu Tan said the move is part of a broader strategy to “optimize [Intel’s] manufacturing footprint” and ensure better returns on investment. “We will further slow the pace of construction in Ohio to ensure our spending is aligned with market demand,” Tan said, adding that the company retains the flexibility to accelerate work when needed.
The delay adds new uncertainty to a project touted as a cornerstone of America’s effort to rebuild domestic semiconductor manufacturing.
Intel’s Ohio campus, dubbed “Ohio One,” is part of a $1 billion investment planned for 2025, including ongoing work such as pouring concrete and steel framing.
Intel was awarded nearly $8 billion in federal CHIPS Act funding, with at least $1.5 billion earmarked for Ohio.
State incentives tied to a 2028 completion target now appear to be in jeopardy, although Intel has not confirmed a revised timeline.
In addition to slowing Ohio construction, Intel is canceling projects in Germany and Poland and consolidating operations in Asia.
Despite the financial challenges faced, the company said Ohio One “remains an important part of our long-term plans,” The Columbus Dispatch reports.
