Intel’s promised $28 billion chip fabrication plants in Ohio are facing further delays. The first factory in New Albany is now expected to be completed only by 2030. According to the struggling chipmaker, the first factory will begin operations sometime shortly thereafter, between 2030 and 2031, extending its original timeline by at least half a decade.
In a move to restore its lost glory, Intel has been cutting capital expenses after its expensive bid to become a contract chip manufacturer for other companies.
The changes were made so Intel can align its factory operation with market demand and “manage capital responsibly”, Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, said in a message to employees which was shared as part of a press release.
“We are taking a prudent approach to ensure we complete the project in a financially responsible manner.”
The company said that the Intel Ohio factory will complete construction in 2031 and will begin running in 2032.
Shares of the company were up more than 5% but later pared some gains to trade about 1% higher.
Last year, the company laid off 15% of its workforce, suspended dividend and initiated an extensive cost-savings plan involving massive cuts to its capital expenditure in the coming years.
Also Read: Why did Intel decides to Cancel ‘Falcon Shores’ AI GPU ?
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