NEW ALBANY, Ohio (WCMH) – Intel's massive computer chip factory, originally scheduled to open this year, has been delayed again, this time to the next decade.
According to a release from Intel, the timeline for two Ohio fabs has been shifted. Originally projected to be completed in 2027, construction of Mod 1 is estimated to be finished between 2030 and 2031. Mod 2, Intel says, would be completed approximately one year later.
NBC4 reported in September 2022 that New Albany's Intel’s Ohio One facility, first slated to be completed in 2025, will be finished with construction between 2026 and 2027 before becoming operational between 2027 and 2028, according to an annual report.
Remembering Ohio’s historic February tornado outbreak one year agoThe multibillion-dollar project -- the most expensive in the state's history -- is promised significant federal and state funding and the CHIPS Act funding the project received has already begun.
“As we continue to invest across our U.S. sites, it’s important that we align the start of production of our fabs with the needs of our business and broader market demand,” Executive Vice President Naga Chandrasekaran said. “This has always been our approach, as it allows us to manage our capital responsibly and adapt to the needs of our customers.”
Intel said that the basement level was completed according to expectations and work above ground is underway.
"While we are disappointed the plants will not open sooner, construction continues at the Ohio Intel site and the company has continued to tell the state the fabs will be completed and produce chips," Ohio Governor Press Secretary Dan Tierney said. "This is a construction delay. The project is moving forward."
Ohio's investments into Ohio One have "clawback" measures in place, which required the company to finish building both plants and have them operational with 3,000 employees by the end of 2028, or give at least one year's notice of a delay. A spokesperson for the governor said this construction delay will not initiate a clawback, as the company has not retracted its overall commitment to the project and to Ohio.
Ohio State cuts diversity offices, programming“In no way does (the new timeline) diminish our long-term commitment to Ohio,” Chandrasekaran said. “We have already started hiring Ohioans who are training at our fabs in Arizona, New Mexico and Oregon, and we will continue to scale our hiring as we approach our operational dates. Intel is proud to call Ohio home, and we remain excited about our future here.”
New Albany Mayor Sloan Spalding said the city is encouraged by Intel's continued investment in Ohio One. Spalding said the company has been a great partner and that the city looks forward their continued collaboration.
"This revised timeline allows our city staff additional time to finalize critical infrastructure components," Spalding said. "Thanks to the diligent work of our teams, approximately 80% of the city of New Albany's necessary infrastructure for the first phase is already complete, including new roads, waterlines and storm pipes."
Ohio Chamber of Commerce President and CEO Steve Stivers felt similarly, calling the added time for Ohio to prepare a "silver lining." However, Stivers said the delay is ultimately unfortunate, but that the Chamber trusts Intel to continue its work.
Ohio Senator John Husted said he is confident the plant will come through on its promises, and be fundamental in the U.S. push to make things in America. Judith Barish, director of CHIPS Communities United, leads a national coalition of communities affected by Intel and CHIPS Act funding. Barish said Intel is the largest recipient of public assistance among semiconductor companies, and should reflect that.
"To see the company repeatedly delay production and reduce the scope of its ambition in Ohio is shocking, if not surprising," Barish said. "After handing over their hard-earned tax dollars, Ohio workers and communities deserve good union jobs and a safe, sustainable production facility that is accountable to local communities. We call on Intel to deliver what it promised."
Rumors of Taiwanese semiconductor manufacturing giant TSMC acquiring at least 20% of Intel's foundry division and reports of Trump's 25% tariff on imported steel and aluminum have had speculative reactions in central Ohio. But last week work on the Ohio One plant continued, indicating no additional changes to construction.
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