Intel Postpones $20 Billion Chip Manufacturing Plant in Ohio

Intel Postpones  Billion Chip Manufacturing Plant in Ohio

Intel, a multinational corporation and technology company, is presently experiencing a delay in their ambitious $20 billion project, due to unfavorable market conditions and delays in the allocation of government funding. According to a report by the Wall Street Journal, Intel’s project involves the construction of semiconductor manufacturing plants in the US state of Ohio. The announcement of this significant project was made in January 2022, with Intel revealing their plans to open two facilities, and begin work on the sites nine months later. Intel’s initial expectation was that the construction of the plants would commence in 2025. However, due to the aforementioned issues, there are now rumors that the production start date has been pushed back to the end of 2026.

When the project was first announced, Intel’s CEO, Pat Gelsinger, stated that this investment in the United States was aimed at helping to satisfy the immense demand for chips. In addition to this, the initiative was presented as a means of supporting the United States in their competition with China’s rapidly expanding semiconductor industry. According to a statement given by Intel to the Wall Street Journal, significant progress has already been made on the project. Intel has previously stated that the scale and pace of the project are heavily influenced by the funding received from the US CHIPS and Science Act. The aim of this government program is to support the country’s development in scientific and technological fields. Recently, Reuters reported that some grants under this program are expected to be awarded before the presidential address in early March. This legislation was approved by US President Joe Biden in August 2022.