An aerial view from February 2024 shows construction progress at Intel’s Ohio One campus of nearly 1,000 acres in Licking County, Ohio. Intel announced plans in January 2022, to invest more than $20 billion in the construction of two new leading-edge chip factories in Ohio. The company broke ground in September 2022. The investment will serve the needs of Intel Foundry customers as part of the company’s IDM 2.0 strategy. (Credit: Intel Corporation)
CHIPS-supported Intel Ohio Factory Delayed Again
Intel says it won’t complete construction on its Ohio fabs for another five years, citing its business needs and market demand.
Intel’s financial woes are reportedly a big reason for the chip facility’s delayed opening. Intel was originally supposed to start chip production in its Ohio factory this year. However, the announcement in late February indicates that it will not begin until at least 2030. The chipmaker suggests it doesn’t need the factories yet and wants to avoid unnecessary spending.
The company is revising the timeline for its two state-of-the-art chip fabs at the Ohio site, where Intel plans on investing more than $28 billion. Specifically, they now plan to complete construction of Mod 1 in 2030 and begin operations between 2030 and 2031. For Mod 2, they expect to complete construction in 2031 and begin operations in 2032,”
Intel reports that it has already started hiring Ohioans who are training at Intel fabs in Arizona, New Mexico and Oregon, and said they will continue to scale their hiring as they approach their new construction dates.
This leaves us with several unanswered questions.
- Exactly how much of the 7.9B in CHIPS Act funds are tied to the Ohio facility?
- Since Secretary Gina Raimundo announced before she left that all CHIPS Acts funds had been dispersed, does that mean the contract with Intel is in place for this work which they are now postponing 5 years?
- If Intel is broken up and sold off what happens to the CHIPS Act funds? and what happens to the plans to build in Ohio??
It is our understanding that taxpayer support through the CHIPS Act is contingent on the company reaching milestones in construction, equipping the factories and then starting production.
New Intel CEO – Lip-Bu Tan
Intel announced that it has appointed Lip-Bu Tan, as chief executive officer, effective March 18, 2025
Tan has more than 20 years of semiconductor and software experience. He served as CEO of Cadence Design Systems from 2009 to 2021. During his time as CEO, Cadence more than doubled its revenue, expanded operating margins and delivered a stock price appreciation of more than 3,200%.
Tan holds a Bachelor of Science in physics from Nanyang Technological University in Singapore, a Master of Science in nuclear engineering from the Massachusetts Institute of Technology and an MBA from the University of San Francisco. In 2022, he received the Robert N. Noyce Award, the Semiconductor Industry Association’s highest honor.
According to Khac Phu Nguyen in Yahoo Finance
“Now, the pressure is on Tan to deliver. His success hinges on locking in major clients and ramping up production of Intel’s next-gen AI chip, Panther Lake. The company is betting big on this chip to compete with Nvidia’s dominance in AI processors, but time is running out. If Intel can’t prove its foundry business is viable, it risks falling even further behind. With Wall Street watching closely, Tan’s next moves will determine whether Intel stages a historic comeback or cements its decline.”
Intel was removed from the Dow Jones Industrial Average in November and was replaced by Nvidia, reflecting the dramatic change of fortune in the semiconductor industry. Intel shares lost 60% of their value last year, while Nvidia’s stock price soared 171%.
Tan, has outlined plans to revitalize the company including significant changes to Intel’s manufacturing processes and artificial intelligence strategies. Additionally, he aims to streamline middle management and attract new clients for Intel’s foundry business.
Tan told employees that he’ll carry on with an existing plan to work on making Intel a top contract chipmaker, signaling he won’t split out the company’s design and foundry businesses.
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