Intel pushes Ohio fab startup to 2030, citing market conditions and balance sheet concerns

Intel has announced a revised timeline for its Ohio One semiconductor manufacturing complex in New Albany, Licking County, pushing the facility's operational debut into the next decade. Construction of the first module (Mod 1) will conclude in 2030, with production commencing sometime between 2030 and 2031. The second module (Mod 2) completion is targeted for 2031, with manufacturing operations following in 2032. The company is moderating the pace of construction to better match its capital spending with prevailing market dynamics. Intel has indicated, however, that it retains the option to expedite construction timelines should circumstances change.

The Ohio facility was originally scheduled to have its first phase operational by 2025. When demand forecasts became uncertain, Intel moved that target to 2027 or 2028. The latest revision reflects the company's assessment that meaningful demand for its Ohio production capacity will not materialize until 2030 at the earliest. This extended timeline may signal tepid near-term expectations for semiconductor demand. From a financial perspective, however, the delay provides relief to Intel's cash position, as the company works to restore profitability. Deferring equipment purchases—the largest capital expense in fab construction—substantially reduces spending obligations through 2028.

The Ohio One campus will span approximately 1,000 acres (4 square kilometers) and eventually accommodate as many as eight fabrication plants, along with support facilities and space for industry partners. Intel has previously cited a total development cost of around $100 billion for the complete site. The initial investment phase was estimated at approximately $28 billion.

Given the revised construction schedule, the Ohio fabs will likely employ process nodes developed after Intel's 14A and 14A-E technologies, which are slated for introduction in 2026 and 2027. These advanced nodes are expected to rely on ASML's Twinscan EXE:5200 or newer High-NA EUV lithography systems, each carrying a price tag of $350 million.

We are taking a prudent approach to ensure we complete the project in a financially responsible manner that sets up Ohio One for success well into the future. We will continue construction at a slower pace, while maintaining the flexibility to accelerate work and the start of operations if customer demand warrants, but I want to be upfront and transparent with you all about our current plan.

Naga Chandrasekaran, executive vice president, chief global operations officer and general manager of Intel Foundry Manufacturing

Intel initiated site work in 2022, and progress has been substantial. A major milestone was recently achieved with completion of the underground foundation, allowing above-ground construction to commence. Through February 4, the site has received 36 superloads, including four extra-large units carrying air separation equipment for the fabs. Workers have logged more than 6.4 million hours on tasks including underground piping installation, placement of over 200,000 cubic yards of concrete, and construction of sub-utility trenches. Office buildings are also under development.

Despite the extended timeline, Intel has already begun recruiting and training Ohio-based staff at facilities in Arizona, New Mexico, and Oregon. These employees are being prepared for roles involving installation of manufacturing equipment and machinery. Staffing efforts are expected to intensify as the operational launch date draws closer.

Source: Tom's Hardware