Intel’s chip factories were expected to be completed by 2028 but have been delayed. What could be the reason: market uncertainty or financial setback?
In a tech age where AI has become the nub of business transformations, Intel has remained on the sidelines.
This has led the business to lose half of its value in stocks and witness a huge decline in sales. But they did take a step to establish themselves as a part of this AI boom – chip manufacturing.
However, once a globally leading semiconductor manufacturer, the organization stated in recent news that they had pushed back on constructing their first chip manufacturing facility in Ohio.
While the construction of the first plant could be completed within a year in 2030, Intel also hoped to build its second factory by 2031. The overall expense on one unit amounts to 28 to 100 billion dollars, respectively.
What could be the reason for setting aside these projects, especially at a time when these chip factories could offer the company a competitive edge?
Naga Chandrasekaran, the VP and head of global operations officer at Intel Foundry Manufacturing, asserts that they plan to use their capital “responsibly” and align their roadmaps with customer needs.
Additionally, the business asserts that it has been struggling financially.
As its competitors are getting ahead, the stream of innovations at Intel has been diminishing. While the chip factories were to be completed in 2026, the delays raised questions.
But amidst the market noise, sources say that Intel has already invested billions in the New Albany site before delaying the project. This could largely affect the employees working at the plant and the work already being undertaken, with support from over 300 Ohio-based businesses.
What does Intel hope to do? They are committed to their vision. While the timeline might be agile, they wish to make these chip factories a reality.