The company reports 800 workers are at its Columbus-area site, with over 1.6 million work hours completed.
Reports now surfaced that Intel’s $20 billion semiconductor project in New Albany, Ohio, has faced a delay, with its completion timeline pushed to late 2026. This ambitious project includes two chip factories and is part of Intel’s broader strategy to bolster domestic semiconductor manufacturing in the United States. The delay underscores the challenges that large-scale manufacturing projects can encounter, potentially including supply chain constraints, economic factors, or operational adjustments.
According to the experts, the postponement could have implications for the U.S. semiconductor industry, as the project was expected to play a critical role in reducing reliance on overseas chip production and supporting the growing demand for semiconductors in various industries. The spokesperson stated that while Intel hasn’t adjusted construction timelines, no reason was given for missing the “aggressive” 2025 production goals.
According to a report by Manufacturing Dive, Intel’s Q4 revenue rose by 10 percent to $15.4 billion. However, the company issued a weaker-than-expected earnings forecast for Q1 2024 due to declining demand. For the fiscal year 2023, full-year revenue dropped by 14% to $54.2 billion. Meanwhile, CFO David Zinsner emphasized Intel’s focus on further capital savings in 2024, building on the $3 billion in cost reductions achieved in 2023.
Intel reports that 800 workers are at its Columbus-area site, with over 1.6 million work hours completed. The workforce is expected to grow to several thousand by year-end. The site is part of a $100 billion complex, supported by $600 million in Ohio state grants and funds from the 2022 U.S. Chips Act, which allocates $53 billion to boost domestic semiconductor production, a field largely dominated by Asia.
The chipmaker faced delays in June and July 2022 before breaking ground in September. Federal chip grants are still pending, per Fortune, with announcements expected by March. Meanwhile, TSMC’s $40 billion Arizona plant is delayed due to labour and cost issues. However, Intel opened a new factory in New Mexico in January, part of a $3.5 billion investment in the region.
When asked about the continuous delay, an Intel spokesperson informed US media that the company remains fully dedicated to the project and is actively advancing factory construction and related facilities this year. The typical construction timeline for semiconductor manufacturing facilities ranges from 3 to 5 years from the groundbreaking stage, depending on various factors.
