Intel slows $28 billion chip factory project in Ohio
Struggling US chip maker Intel on Friday pushed out the timeline for completing two new fabrication plants in Ohio, saying it is taking a prudent approach to the $28 billion project.
Chip production originally slated to begin in 2025 at Intel's first new 'fab' in decades is now expected to start in 2030, Intel said in a statement.
'It's important that we align the start of production of our fabs with the needs of our business and broader market demand,' Intel Foundry Manufacturing general manager Naga Chandrasekaran said in a message to employees shared by the company.
'We will continue construction at a slower pace, while maintaining the flexibility to accelerate work and the start of operations if customer demand warrants.'
For the full year 2024, Intel recorded a net loss of $18.8 billion as the US chip giant continues to struggle to stake its place in the artificial intelligence revolution.
Intel is one of Silicon Valley's most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business.
The company was also caught by surprise with the emergence of Nvidia, a graphics chip maker, as the world's preeminent AI chip provider.
Intel CEO Pat Gelsinger was forced out in December after the board lost confidence in his plans to turn the company around.
His abrupt departure came just months after the company vowed to cut more than 15,000 jobs in a draconian cost reduction plan and paused or delayed construction on several chipmaking facilities.
Former US president Joe Biden's administration last year finalized a $7.9 billion award to Intel as part of an effort to bring semiconductor production to US shores.
But in Europe, Intel late last year said it was delaying its plans to build two mega chip-making factories in Germany and Poland as the company faces lower demand than anticipated.
Intel also said at the time that it would pull back on its projects in Malaysia.
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