Intel Delays its $20 Billion Ohio One Project by at Least a Year

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Intel faces a significant setback in its ambitious $20 billion Ohio One Project in New Albany, as the completion timeline experiences a delay of at least a year. The hindrance is attributed to market challenges and the gradual release of federal grant funds, according to official statements from the company and widespread media reports

The Wall Street Journal first reported that the Ohio One Project, in New Albany has experienced delays primarily due to market challenges and the slow rollout of federal grant money. Intel’s ability to start chip production relies on completing construction and installing machinery, for semiconductor manufacturing. However, the project’s expected timeline has been extended because of the distribution of grant funds designated for this endeavor.

Intel has acknowledged the delays to Ohio One project, accepting that it won’t be able to achieve its “aggressive” target of commencing production in 2025. However, the company hasn’t yet shared a revised timeline, for completion. According to The Wall Street Journal, there is speculation that the Ohio One Project might not be finished until 2026. Production would then begin after all the necessary equipment is installed.

Read also: Intel’s Ohio One: Tracking Progress on the $20 Billion Chip Plant

Intel wants to make it clear that they have been working on construction since 2022 and there haven’t been any changes, in the construction progress or expected timelines. They mention that it usually takes three to five years to complete semiconductor manufacturing facilities after starting the construction. Even though there have been some delays Intel is proud to be part of the Silicon Heartland and remains fully dedicated, to the Ohio One Project.

Intel embarked on the Ohio One Project two years ago aiming to create the world’s largest chip-manufacturing facility. However, this ambitious endeavor encountered obstacles along the way including delays that were publicly announced in June and July of 2022. Nevertheless, progress was made as ground was officially broken in September 2022 marking the beginning of a project, with potential, for the state of Ohio.

Read also: Intel announces US$20 billion investment in new Ohio chip factory

What is the current status of the Ohio One Project?

Currently, Intel has hired, more than 100 individuals from Ohio with some undergoing training at their facilities in Arizona and Oregon. The construction site in Ohio is home to a workforce of 800 to 900 employees. It is expected to grow significantly and employ several thousand people by the end of the year. What’s impressive is that the Ohio One project has already witnessed over 1.6 million work hours dedicated to aspects of construction.

Breaking down the project statistics reveals the enormity of this undertaking;

Pouring over 32,000 yards of concrete which’s equivalent to filling up an entire stadium.

Installing 4,300 tons of rebar roughly weighing as much as 600 African elephants.

Laying down about 15,000 linear feet of underground pipes which would stretch almost as long as 700 parking spots placed end to end.

Installing around 210,000 feet of conduit—surpassing the length of, over 700 football fields.

Even though the Ohio One Project facing delays and will not be up and running as soon as originally expected Intel’s updated forecast aligns, with the deadlines established through the financial support received from Ohio. In June 2023 Ohio solidified an agreement with Intel to bring back manufacturing jobs providing $600 million on the condition that Ohio One employs 3,000 workers by the end of 2028.

Read also: $20 billion Intel Chip Manufacturing Plant coming to Ohio

As part of its efforts to minimize risks associated with the supply chain, Intel has been strengthening its domestic manufacturing capabilities in recent years. The company is actively expanding its facilities in Oregon and Arizona, and just recently opened a factory, in New Mexico.