Intel to indefinitely postpone groundbreaking ceremony for new Ohio fab

Earlier this year, Intel announced that it would invest more than $20 billion to build two new fabs in Ohio, USA. As part of its IDM 2.0 strategy, this investment will help increase production capacity to meet growing market demand for advanced semiconductors, power Intel’s next-generation products, and meet the needs of foundry customers.

Intel originally planned to hold the groundbreaking ceremony of the new fab on July 22, 2022, but as the US Congress failed to reach an agreement on the passage of the CHIPS Act, Intel decided to postpone the groundbreaking ceremony indefinitely in protest. According to the Wall Street Journal, Intel has sent e-mails to relevant departments, saying that such a decision was made due to the slow progress of the CHIPS Act.

Intel Ohio fab

Under the CHIPS Act, semiconductor manufacturers can receive about $52 billion in subsidies. It is understood that the timing of Intel’s start of construction of the fab will remain unchanged, but it claims that the scale and progress of the fab’s construction depend on the funding provided by the CHIPS Act. If these subsidies are ultimately not implemented, Intel is likely to continue to build the Ohio fab, but at a slower pace and the scale is also full of uncertainty.

The project is the largest single private sector investment in Ohio history. It is expected to create 3,000 Intel jobs during the initial phase and during construction, as well as 7,000 construction jobs and support tens of thousands of long-term jobs for local suppliers and partners. In a press release at the beginning of the year, Intel CEO Pat Gelsinger sees this as a landmark event that will help build a more resilient supply chain and ensure reliable access to advanced semiconductor technology for years to come.