Intel has revealed that there will be delay in the opening of its $28 billion chip fabrication plants in Ohio.
Intel has indicated the delay in its semiconductor plants at a time when the technology giant has reportedly started preliminary discussions for selling business units to TSMC and Broadcom.
Intel says its first factory in New Albany is now projected for completion by 2030, extending its original timeline by at least five years. Operations at the facility are expected to commence between 2030 and 2031, reflecting Intel’s strategy of aligning capital expenditures with market demand.
The decision to delay construction and operational timelines is driven by Intel’s need to manage capital prudently. The company has been cutting capital expenditures after its push to become a contract chip manufacturer strained its balance sheet. Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, emphasized that the project is being approached in a financially responsible manner to ensure sustainable growth.
Intel has laid out a revised Capex strategy, focusing on cost efficiencies and capital optimization. The second Ohio fabrication facility is now scheduled to be completed in 2031, with operations beginning in 2032.
The company has made adjustments to its investment approach, projecting 2025 gross capital investments at approximately $20 billion, at the lower end of its previous $20 billion to $23 billion guidance. This includes capacity adjustments in Ohio and Ireland, optimizing previously made investments to meet anticipated demand at a lower spending level.
Intel earlier said its net Capex for 2025 is expected to range between $8 billion and $11 billion, with about half of the offsets anticipated from government incentives and tax credits, and the remainder from partner contributions.
Intel has underscored deleveraging as a key priority for 2025, focusing on lower Capex, increased cash flow from operations, and unlocking value across non-core assets. These moves are part of Intel’s cost-savings plan, which has included workforce reductions, and reassessment of its capital allocation strategy.
Intel reported fourth-quarter revenue of $14.3 billion, reflecting a 7 percent sequential increase. Intel’s full-year revenue stood at $53.1 billion, marking a 2.1 percent year-over-year decline, impacted by lower revenue from Mobileye and Altera, as well as a projected decline in Foundry Services.
Baburajan Kizhakedath
