Intel Postpones Ohio Plant Launch Date: Financing Difficulties

Intel has announced that it has postponed the launch of its new chip plant in Ohio. Initially, the plant was expected to start operating in 2025, but now the launch has been postponed until 2030. The reason for this decision was the financial difficulties faced by the company.

Reasons For the Delay

Intel explains the delay in the need to synchronize the commissioning of capacities with the dynamics of market demand. However, according to experts, the main reason is the lack of funds. The construction of the plant is estimated at $28 billion, and Intel had to revise its investment plans due to falling revenues and rising costs.

Despite this, the company does not plan to stop construction, but the pace will have to be slowed down.

Why Did Financial Difficulties Arise?

Construction of the plant began in 2022. At that same time, the company received a funding opportunity of $7.8 billion under the federal CHIPS program. However, Intel received only $2.2 billion of the promised funds, $1.5 billion of which was supposed to go to the New Albany project.

Despite this, according to the company's financial reports, Intel's annual revenue in 2024 decreased by 2% compared to the previous year. The company began losing revenue in 2024, prompting it to lay off 15,000 employees in hopes of saving several billion dollars.