Intel announced it will further postpone its plans to open two CHIP manufacturing facilities in Ohio, completing them until 2030. The company initially announced its Ohio plan in 2022 and features an ambitious opening for 2025.
Intel said it completed the “basement” level of one of its Ohio projects last quarter that makes overground buildings now possible. Technically, the two $20 billion projects are allocated in two different chip fabs, called mod 1 and mod 2, which will not be completed simultaneously. Intel said the Mod 1 will now open in 2030 to “align our factory production with our business needs and the broader market demand.” mod 2 will be completed in 2031 the following year.
The reason is financial: Intel said it is taking a “prudent approach” that will ensure chip factories are completed “financially responsible.” Intel had previously told Ohio that it would postpone the factory until 2027. This also delayed the project's groundbreaking nature and seemed to inspire the death of the Chip Act in 2022. Washington Post.
More delays add to the turbulent times of Intel as a company. Former CEO Pat Gelsinger was postponed in December, probably because he did not have an aggressive plan from Intel to expand chip production. Prior to that, the company's funding it will receive through the “Share Act” reduced by $600 million. Coupled with the layoffs, and the continued dominance of chip makers like AMD, Intel is still in a tricky position.
This article originally appeared on Engadget
