Facing economic difficulties, Intel announced the postponement of the opening of its $28 billion chip production factory in Ohio, which the company had promised to build. Initially planned to be operational in 2025 when first announced, the factory will now remain under construction for at least another 5 years. Intel, a long-time competitor in semiconductor production, aiming to regain the lead in the US as part of its efforts to climb back to the top, had announced in 2022 that it would establish two chip manufacturing plants in Ohio. However, due to the financial struggles the company is facing and the changing market conditions, the project has been delayed until 2030.

3.7 BILLION DOLLARS ALREADY SPENT Company officials emphasized their continued long-term commitment to the Ohio project and highlighted that they had already spent $3.7 billion to bring it to life. Intel plans to continue construction of the factories at a slower pace and will accelerate work when market demand increases. According to this plan, the promised factories will start operating in 2030 and 2031. Intel had received $7.8 billion in funding under the US Federal CHIPS Incentive Program and had promised to build a chip manufacturing facility in Ohio. The US provides significant financial support to chip manufacturers in return for specific commitments to increase semiconductor production, which is crucial for national security.

FINANCIAL STRUGGLES UNRELENTING Intel, one of the technology sector’s giants, has experienced significant economic fluctuations in recent years. The company laid off 15,000 employees in 2024 to reduce costs and initiated a global restructuring plan. Following these developments, the company’s stock lost 57% of its value. While Intel cited “adapting to market demands” as the reason for postponing the Ohio factory projects, it is believed that the primary cause is financial problems. Falling behind companies like Samsung, TSMC, and Nvidia in the chip production sector, Intel declared a loss of $18.8 billion in the 2024 fiscal year, whereas it had made a profit of $1.7 billion in 2023. After such a drastic change within a year, the company made the decision to significantly reduce its expenses.