According to media reports, Intel’s first Ohio factory, originally set for 2025, will be delayed by at least five to six years, opening in 2030 or 2031. While the second factory in Ohio won’t be ready until 2031, with operations starting in 2032.
While the delays have been attributed in part to rumours around a foundry split, delays in Intel’s Ohio fabs are also being attributed to stalled CHIPS Act funding and uncertainty over proposed tariffs being considered by the Trump Administration.
Intel is one of the top CHIPS Act beneficiaries, having secured $7.86 billion in subsidies. In its January earnings call, the company confirmed receiving $2.2 billion in federal grants.
Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, told Reuters that the company is taking a “prudent approach” to ensure they complete the project in a financially responsible manner.
Poor financial results saw the company layoff 15% of its workforce and capital expenditures were significantly cut. Intel’s CFO David Zinsner said that the company was aiming to keep 2025 operating expenses at around $17.5 billion.
According to the company, it is forecasting lower staff numbers and other measures will reduce operating expenses to $20 billion for 2024, with this expected to fall to $17.5 billion in 2025 with further reductions in in 2026.
In Europe, Intel has also postponed construction of its Fab 29.1 and Fab 29.2 facilities near Magdeburg, Germany. Initially scheduled to start operations by the end of 2027, it is now reported that production won’t begin until 2029/30.
