No Money, No Sense: Intel Delays $28 Billion Ohio Facility Construction Until 2030

Having announced the construction of a large manufacturing complex in Ohio in 2022, Intel initially expected to put it into operation this year and start producing products using Intel 18A technology. At first, the deadline was pushed back to 2027, and now the company’s management claims that, in the best-case scenario, it will complete the plants by 2030.

Image Source: Intel

On the last day of February, Intel’s chief global operations officer Naga Chandrasekaran wrote an open letter to employees, declaring “the importance of aligning the startup of our facilities with the needs of our own businesses and the broader market.” He also spoke of the need to “manage capital responsibly and adapt to customer needs.” Both statements make it clear that the company doesn’t have the extra cash to build the Ohio facility, which is expected to cost at least $28 billion and has little demand from Intel’s customers.

The company is currently targeting completion of the first module of the Ohio facility by 2030, with commissioning no later than 2031. The second module would be completed no earlier than 2031, with operations to begin in 2032. The new schedule itself is considered flexible, as construction of the Ohio facilities would be accelerated if customer demand arises.

The press release was also accompanied by a video with a close-up of the construction site and a report on the work done. The zero cycle of the buildings is completely ready, the builders have already begun to create the above-ground part of the buildings and infrastructure. More than 6.4 million man-hours and 153,000 cubic meters of concrete have already been spent on the construction of the complex. Intel has also trained personnel for future enterprises at its sites in other states. Intel’s most frequently mentioned customers for 18A technology remain Microsoft and AWS (Amazon), but the company initially planned to produce chips for defense customers such as Boeing and Northrop Grumman, as well as the Swedish telecommunications giant Ericsson. Apparently, the company will now concentrate the production of chips using 18A technology in Oregon and, if necessary, master it in Arizona.