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Intel Delays $20 Billion Ohio Project, Citing Slow Chip Market - Slashdot

Feb 02, 2024 - slashdot.org
Intel is reportedly delaying the construction timeline for its $20 billion chipmaking project in Ohio due to market challenges and slow disbursement of U.S. grant money. Initially, chip-making was set to start next year, but completion of the manufacturing facilities is now expected in late 2026. The company's shares were down by 1.5% in extended trading.

Despite the delay, Intel remains committed to the project and continues with construction. The company cited that managing large-scale projects often involves changing timelines. Last month, Intel forecasted its first-quarter revenue below market estimates due to uncertain demand for its traditional server and personal computer chips, as spending shifts to AI data servers, a market dominated by rivals Nvidia and Advanced Micro Devices.

Key takeaways:

  • Intel is delaying the construction timeline for its $20 billion chipmaking project in Ohio due to market challenges and slow rollout of U.S. grant money.
  • The initial timeline had chip-making starting next year, but construction is now not expected to be finished until late 2026.
  • Despite the delay, Intel remains committed to the project and construction is continuing.
  • Uncertain demand for its chips used in traditional server and personal computer markets, and a shift in spending to AI data servers, have led the company to forecast revenue for the first quarter below market estimates.
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