Intel Ohio Plant Faces Setbacks: Delays and Funding Shortfalls

In January 2022, Intel announced an investment exceeding $20 billion to construct two new wafer fabrication plants in Ohio, United States. As a cornerstone of its IDM 2.0 strategy, this financial commitment is poised to augment production capacity to cater to the escalating demand for advanced semiconductors, power Intel’s next-generation products, and fulfill the requirements of its foundry clients. Previous reports suggested that, due to market challenges and delays in subsidies from the U.S. government, Intel had postponed the production timeline from the originally planned 2025 to the end of 2026.

According to TomsHardware, Intel submitted a progress report to Ohio’s local development departments this January, indicating the project is facing challenges. The investment amount has fallen short of initial promises, and the production timeline is expected to be further delayed, now projected between 2027 and 2028.

The report highlights that as of December 31, 2023, Intel has already invested approximately $1.5 billion and is contractually committed to invest an additional $3 billion. As of December last year, 69 employees from 14 counties in Ohio were working on-site; since the project’s announcement, construction workers from 75 of Ohio’s 88 counties have contributed to the project. The number of Intel’s suppliers has expanded from 150 to 350; plans for office buildings, water treatment and recycling facilities, and on-site air separation units are ready.

The $4.5 billion already invested represents less than a quarter of the original $20 billion commitment, with Intel receiving over $2 billion in incentives for the project. This investment marks the largest single private-sector investment in Ohio’s history, expected to create 3,000 direct jobs with a total payroll of $405 million, generate 20,000 positions in related support industries, and contribute $2.8 billion annually to Ohio’s GDP.