Intel delays Ohio fabs until the 2030s
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Struggling chip giant Intel Corp. has delayed the completion of two wafer fabs under construction in Licking County, Ohio, saying that they will not now be completed until 2030 and 2031.
When the fabs were announced, Intel said initial expenditure would be US$20 billion with ground-breaking in 2022 and the first fab module to entering production in 2025.
On February 28, Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, sent a letter to Intel employees updating them on construction completion dates for Ohio modules 1 and 2 with content shared in a press release.
“Our investments in Ohio are part of our broader US manufacturing expansion. As we continue to invest across our US sites, it’s important that we align the start of production of our fabs with the needs of our business and broader market demand. This has always been our approach, as it allows us to manage our capital responsibly and adapt to the needs of our customers,” Chandrasekaran wrote.
He added: “With that in mind, we are adjusting the timeline for our two Ohio fabs. Specifically, we now plan to complete construction of Mod 1 in 2030 and begin operations between 2030 and 2031. For Mod 2, we expect to complete construction in 2031 and begin operations in 2032.”
Chandrasekaran said Intel is taking a “prudent approach to ensure we complete the project in a financially responsible manner. . .” He said the company will now slow down construction while maintaining the flexibility to accelerate work and begin chip production subject to demand.
“In no way does this diminish our long-term commitment to Ohio,” said Chandrasekaran.
The pull back by Intel follows a similar move by the company when it paused plans for its two fabs in Magdeburg, Germany.
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