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[News] Intel Pushes Ohio Fabs to 2030 Amid Foundry Split Rumors and CHIPS Act Uncertainty


2025-03-03 Semiconductors editor

Amid foundry split and sale rumors, Intel is taking a cautious approach to expansion. According to The Columbus Dispatch and Reuters, Intel’s $28 billion Ohio chip plants could face more delays, as Team Blue has pushed the timeline back at least five years.

According to the reports, Intel’s first Ohio factory, originally set for 2025, will be delayed by at least five to six years, opening in 2030 or 2031. Meanwhile, the second factory in Ohio won’t be ready until 2031, with operations starting in 2032, the reports add.

Notably, another report from Fierce Electronics mentions that delays in Intel’s Ohio fabs may stem from stalled CHIPS Act funding and uncertainty over proposed Trump-era tariffs.

Intel is one of the top CHIPS Act beneficiaries, securing $7.86 billion in subsidies. In its January earnings call, the company confirmed receiving $2.2 billion in federal grants.

Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, told Reuters that the company is taking a “prudent approach” to ensure they complete the project in a financially responsible manner.

Following a 15% layoff of workforce and a capex slash, Intel CFO David Zinsner noted that the company aims to keep 2025 operating expenses around $17.5 billion, as per Reuters.

According to the company, Intel forecasts lower staff numbers and other measures will reduce operating expenses to $20 billion for 2024, with this expected to fall to $17.5 billion in 2025 and reduce again in 2026.

In Europe, Intel has also postponed construction of its Fab 29.1 and Fab 29.2 facilities near Magdeburg, Germany. According to Tom’s Hardware, the fabs were initially scheduled to start operations by the end of 2027. However, it now estimates production will begin between 2029 and 2030.

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(Photo credit: Intel)

Please note that this article cites information from The Columbus Dispatch, Reuters, Fierce Electronics, Tom’s Hardware and Intel.

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