Intel announced on Friday that its $28 billion chip fabrication plants in Ohio are facing further delays, with the first factory in New Albany now anticipated to be completed by 2030. The plant is set to commence operations between 2030 and 2031, extending the original timeline by at least five years.
The company has been reducing capital expenses after investing heavily to become a contract chip manufacturer for other firms, which strained its finances. The adjustments aim to align factory operations with market demand and ensure responsible capital management, according to Naga Chandrasekaran, Intel's general manager of Foundry Manufacturing.
Intel stated that its second Ohio facility will finish construction in 2031 and commence operations in 2032. The company's shares initially rose over 5%, later settling to trade about 1% higher.
Local news source the Columbus Dispatch initially reported the delays earlier on Friday. Last year, Intel suspended dividends and initiated a significant cost-saving strategy involving substantial cuts in capital expenditure over the coming years.
Intel's CFO David Zinsner informed Reuters last month that the company's objective is to maintain operating expenses at approximately the 2025 level.