Intel has officially confirmed it will further delay construction at its $28 billion “Ohio One” semiconductor manufacturing campus in New Albany according to quarterly earnings released on Thursday. Originally set to launch its first fabrication facility by 2025, the updated timeline now targets completion in 2030, with operations expected to begin between 2030 and 2031. The second facility is scheduled to follow in 2031 and go online by 2032. This slowdown reflects a strategic move to align capital expenditures with real-time market demand, while keeping flexibility to accelerate if required.
Financial Strategy Drives Construction Delays
The decision coincides with broader corporate restructuring under Intel’s CEO Lip-Bu Tan, who is focused on optimizing investments and restoring profitability. Recently, Intel reported a $2.9 billion quarterly loss and revealed plans to reduce its workforce by 15%. It has also canceled projects in Germany, Poland, and Costa Rica. Tan emphasized the importance of a “systematic approach,” noting that committing to large-scale builds without confirmed customer demand was financially unwise.
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Slow but Steady Progress Continues in Ohio
Although the project timeline has shifted, construction activities continue at a measured pace. To date, Intel has logged over 6.4 million labor hours, poured more than 200,000 cubic yards of concrete. Furthermore, it made significant progress on trenching and support infrastructure. The company remains committed to Ohio, citing the start of workforce training programs at its other U.S. sites in Arizona and New Mexico as a sign of continued investment.
Long-Term Vision Anchored by Federal Support
Despite the delays, Intel stresses its dedication to becoming a leader in U.S. chip manufacturing, particularly in the AI and contract foundry space. The company has secured up to $7.865 billion in CHIPS Act funding. Out of this, at least $1.5 billion designated for the Ohio campus. Local stakeholders remain optimistic but cautious, pointing to the need for visible progress by 2028. This is the date given by Intel’s agreement with Ohio’s Department of Development. As Intel recalibrates its path, the Ohio One project remains a centerpiece in America’s ambition to reclaim semiconductor dominance and strengthen national supply chains.
Project Overview
Project Name: Intel’s “Ohio One” semiconductor manufacturing campus in New Albany, Ohio.
Original Timeline: First factory was slated to begin operations by 2025.
Updated Timeline: Now expected to be completed by 2030 with operations beginning in 2030–31; second fab by 2032.
Total Investment: Part of a broader $28 billion initiative by Intel in the U.S.
CHIPS Act Funding: Intel was awarded $7.865 billion in federal funding; at least $1.5 billion allocated to Ohio project.
Reason for Delay: Intel is slowing construction to align spending with market demand and reduce financial risk.
Construction Progress: Over 6.4 million labor hours logged; key groundwork like concrete and trenching completed.
Local Impact: Project expected to boost Ohio’s economy and create thousands of jobs over time.
Strategic Importance: Seen as essential to U.S. semiconductor independence and national security.
Current Status: Construction ongoing at slower pace; operations still subject to annual state reporting and milestones.
