Ohio Intel plant construction in New Albany delayed by at least three years

NEW ALBANY, Ohio (WCMH) – Intel's massive computer chip factory, originally scheduled to open this year, has been delayed again, this time to the next decade.

According to a release from Intel, the timeline for two Ohio fabs has been shifted. Originally projected to be completed in 2027, construction of Mod 1 is estimated to be finished between 2030 and 2031. Mod 2, Intel says, would be completed approximately one year later.

NBC4 reported in September 2022 that New Albany's Intel’s Ohio One facility, first slated to be completed in 2025, will be finished with construction between 2026 and 2027 before becoming operational between 2027 and 2028, according to an annual report.

The multibillion-dollar project -- the most expensive in the state's history -- is promised significant federal and state funding and the CHIPS Act funding the project received has already begun.

Ohio's investments into Ohio One have "clawback" measures in place, which required the company to finish building both plants and have them operational with 3,000 employees by the end of 2028. Under this adjusted timeline, Ohio would be able to pull its funding and halt future payments. Neither Intel nor the state has indicated this will happen, however.

“As we continue to invest across our U.S. sites, it’s important that we align the start of production of our fabs with the needs of our business and broader market demand,” Executive Vice President Naga Chandrasekaran said. “This has always been our approach, as it allows us to manage our capital responsibly and adapt to the needs of our customers.”

Intel said that the basement level was completed according to expectations and work above ground is underway.

“In no way does (the new timeline) diminish our long-term commitment to Ohio,” Chandrasekaran said. “We have already started hiring Ohioans who are training at our fabs in Arizona, New Mexico and Oregon, and we will continue to scale our hiring as we approach our operational dates. Intel is proud to call Ohio home, and we remain excited about our future here.”

New Albany Mayor Sloan Spalding said the city is encouraged by Intel's continued investment in Ohio One. Spalding said the company has been a great partner and that the city looks forward their continued collaboration.

"This revised timeline allows our city staff additional time to finalize critical infrastructure components," Spalding said. "Thanks to the diligent work of our teams, approximately 80% of the city of New Albany's necessary infrastructure for the first phase is already complete, including new roads, waterlines and storm pipes."

Ohio Chamber of Commerce President and CEO Steve Stivers felt similarly, calling the added time for Ohio to prepare a "silver lining." However, Stivers said the delay is ultimately unfortunate, but that the Chamber trusts Intel to continue its work.

Rumors of Taiwanese semiconductor manufacturing giant TSMC acquiring at least 20% of Intel's foundry division and reports of Trump's 25% tariff on imported steel and aluminum have had speculative reactions in central Ohio. But last week work on the Ohio One plant continued, indicating no additional changes to construction.