Struggling with economic challenges, Intel announced the postponement of the opening of its $28 billion chip production factory in Ohio until 2030, a facility it pledged to build. Initially planned to be operational by 2025, the factory will now remain under construction for at least 5 more years. Intel, long a contender for semiconductor production leadership, had announced in 2022 it would establish two chip manufacturing factories in Ohio as part of its efforts to reclaim the top spot in the US. The company’s financial difficulties and changing market conditions led to the project being first postponed to 2025, and now further delayed until 2030. $3.7 BILLION SPENT Company officials stressed their long-term commitment to the Ohio project, revealing they had already spent $3.7 billion to bring it to life. Intel intends to accelerate work on the factories when market demand increases by maintaining construction at a slow pace initially. According to this plan, the promised factories will commence operations in 2030 and 2031. Intel had secured $7.8 billion in funding under the US Federal CHIPS Incentive Program and had committed to establishing a chip production facility in Ohio. In an effort to enhance semiconductor production critical for national security, the US provides significant financial support to chip manufacturers in exchange for certain commitments. FINANCIAL DIFFICULTIES PERSIST A major player in the tech sector, Intel has experienced significant economic fluctuations in recent years. In 2024, the company laid off 15,000 employees and initiated a global restructuring plan to reduce expenses. Following these developments, the company’s stock had plummeted by 57%. While Intel attributed the delays in the Ohio factory projects to “aligning with market demands,” it is believed that the main reason behind the postponement was financial issues. Falling behind Samsung, TSMC, and Nvidia in the chip manufacturing sector, Intel reported a $18.8 billion loss in the 2024 fiscal year. The company had earned $1.7 billion in 2023. After the drastic change within a year, the company had decided to significantly cut its expenses.