March 4, 2025 /SemiMedia/ — Intel announced on February 28 that the completion of its $28 billion chip manufacturing facility in New Albany, Ohio, will be further delayed, with the first plant now expected to be finished no earlier than 2030—pushing the original timeline back by at least five years. The facility is projected to begin operations between 2030 and 2031.

The company has been aggressively expanding its foundry business to compete with TSMC and Samsung, but heavy investments have strained its balance sheet, leading to capital expenditure cuts in recent years.

Naga Chandrasekaran, general manager of Intel Foundry Services, told employees in a statement that the adjustments align the company’s factory expansion with market demand while ensuring responsible capital management. “We are taking a measured approach to ensure the project progresses in a financially sustainable manner,” he said.

Intel also confirmed that its second Ohio facility is now scheduled for completion in 2031, with operations beginning in 2032.