LICKING COUNTY, Ohio — Intel is delaying its construction timeline for its $20 billion chipmaking project in Ohio due to business conditions and demand environment, the company confirmed to 10TV on Thursday.
The initial timeline had chip-making starting in 2025 but construction on the project’s manufacturing facilities now isn’t expected to be finished until late 2026, the Wall Street Journal reports.
"Managing large-scale projects often involves adapting to changing timelines, a common occurrence in the industry. Our decision-making is anchored in market dynamics and responsible capital management," said an Intel spokesperson.
Intel said that due to the sheer size of the project, it depends heavily on funding from the CHIPS Act and business conditions. They added that typical construction timelines for facilities such as this are three to five years from the groundbreaking, which took place in September 2022.
So far, Intel has hired more than 100 Ohioans and currently has 800-900 construction workers on the site and expects to have several thousand by the end of the year.
Those workers continued to make progress on Friday even after the company announced it is pushing back its 2025 timeline for memory chip making.
Johnstown City Manager Sean Staneart said in a statement, "We understand projects ebb and flow, and at times can decelerate or accelerate due to internal or external circumstances."
Ohio Senator Sherrod Brown echoed that.
"It's not unexpected," Brown said. "We knew that this was a long, complicated process. We work with Intel, we talk to them every couple days every week to partner with them what they need."
Since the project broke ground in 2022, nearby cities, including New Albany and Johnstown, have been preparing for the future influx of 3,000 Intel employees and 7,000 construction workers.
"Our ongoing investment and commitment solidify the project's forward momentum. We have proactively undertaken significant preparatory work in anticipation of the CHIPS Act grants, aligning our strategy with future planning," said an Intel spokesperson.
Intel ensures it is fully committed to the project and will continue to make progress on the construction of the factories and supporting facilities this year.
The City of New Albany released a statement about the timeline change, saying in part, "There is no delay from our perspective as we always anticipated construction would take 3 to 5 years. The City of New Albany will continue to fulfill its commitments of completing related infrastructure."
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