Intel’s new Ohio wafer fab may be delayed
In January 2022, Intel announced an investment exceeding $20 billion to construct two new semiconductor fabrication plants in Ohio, USA. This monumental investment, a cornerstone of the IDM 2.0 strategy, is poised to bolster production capabilities to meet the surging market demand for advanced semiconductors, power Intel’s next-generation products, and fulfill the requirements of its foundry clients. Initially slated to commence operations in 2025, recent reports suggest that due to market dynamics and delays in receiving government subsidies from the United States, Intel has postponed the production timeline to the end of 2026.
According to TomsHardware, an Intel representative confirmed that the new Ohio semiconductor fabs are unable to meet their initial production goals. However, construction efforts are persistently underway, with no recent alterations to the construction schedule, noting that the typical construction period for semiconductor facilities spans three to five years.
While Intel has neither confirmed nor denied the postponement nor provided a precise date for the new fabs’ operational debut, their statement somewhat corroborates market speculation. Indeed, Intel had previously indicated that the expansion scope and pace of the Ohio semiconductor fab project were contingent upon subsidies and other financial conditions related to business agreements. It is understood that currently, approximately 800 individuals are engaged in the construction of the Ohio fab, with expectations for this number to significantly increase by the end of this year.
Intel is not the only corporation to defer the initiation of new semiconductor fabrication projects in the United States; both Samsung and TSMC have postponed their semiconductor fab deployments in Texas and Arizona, respectively, for various reasons.