Intel Delays Completion of $20 Billion Ohio Chip Factory to Late 2026

Intel (INTC) has revealed that it will not meet its original target to complete the $20 billion chip manufacturing plant in Ohio by 2025.

The Wall Street Journal reported on Thursday that the construction is now expected to conclude in late 2026. The delay is attributed to ongoing challenges in the semiconductor industry and slower-than-expected distribution of U.S. government grants aimed at boosting domestic chip production.

Intel spokesperson William Moss told Investopedia on Friday that typical timelines for building semiconductor fabs range from three to five years after groundbreaking, influenced by various factors. The Ohio project officially began construction in September 2022.

"Although we won’t meet the ambitious 2025 production target set when we chose Ohio in January 2022, construction has been progressing steadily since late 2022. We have not altered our construction pace or timeline projections recently," Moss stated via email.

Currently, Intel employs between 800 and 900 workers on-site, with plans to expand the workforce to several thousand by year-end, ultimately generating around 7,000 construction jobs.

Intel’s stock dropped 2% to $42.52 around 1:00 p.m. ET on Friday, marking an 11% decline so far this year.

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