Intel's new timeline conflicts with promised deadline
After another round of delays, Intel's Licking County project timeline now appears to be at odds with promises the company made to the state of Ohio.
Why it matters: Intel has already received hundreds of millions of dollars from the state for the construction of its planned $20 billion semiconductor factory.
If Intel's new projections are accurate, Ohio can decide whether to claw back funds or amend the agreement.
Follow the money: In 2023, Ohio agreed to a $600 million onshoring grant funding the construction of two chip factories. The state disbursed the money three months later, setting a project deadline of Dec. 31, 2028.
Ohio also committed to a $300 million water reclamation grant, a $475 million Job Creation Tax Credit and about $300 million in road and infrastructure work.
New Albany is also spending $180 million on infrastructure for Intel, and the federal CHIPS Act provided $7.86 billion for various Intel projects, $2.2 billion of which has already been distributed.
State of play: Despite that 2028 deadline, Intel's latest timeline announcement explicitly says it plans to complete its production facilities, or "fabs," in 2030 and 2031, respectively.
The company cited a need to "align the start of production of our fabs with the needs of our business and broader market demand."
Between the lines: Department of Development spokesperson Mason Waldvogel confirms to Axios that Intel has received the full $600 million for construction, but has not yet received water reclamation and tax credit funds.
What they're saying: Neither Intel nor state officials have an explanation for the timeline discrepancy.
Waldvogel says Intel has not requested to amend its agreement and has until a year before the required deadline to do so.
"While Intel has indicated a later completion date, construction timelines are estimates and can be moved up."
Intel spokesperson Eleonora Akopyan declined to answer Axios' questions about the timeline.
Instead, she pointed to language in the announcement that says Intel is "maintaining the flexibility to accelerate work and the start of operations if customer demand warrants."
A bird's-eye view of progress
Amid project delays and company uncertainty, work is still ongoing at the Ohio One site.
Driving the news: Intel released new drone footage showcasing the massive scope of construction, which is reshaping not just New Albany, but the whole region.
By the numbers: Intel says crews have already worked more than 6.4 million hours on the project.
Waldvogel tells Axios that Ohioans from 83 counties and 430 Ohio companies have worked on the project.
As a whole, Intel promised to create 7,000 construction jobs in addition to 3,000 permanent full-time jobs, and $405 million in annual payroll.
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