Key Highlights

  • Intel installed the first major structural truss at its Ohio chip plant, starting the next phase of construction.
  • The first Ohio fab was due to begin production in 2025; operations are now targeted for 2030 or 2031.
  • Intel said its next Arizona fab, under construction with tools being installed, begins operations by the end of 2028.
  • Reported talks with SK Hynix on memory production at the Ohio site remain unconfirmed by either company.

A Milestone in New Albany

Intel (NASDAQ:INTC) announced on Wednesday that crews have installed the first major structural truss at its new chip fabrication plant in New Albany, Ohio. The step means the next part of construction has begun at a site that is running at least five years behind schedule.

The head of Intel Foundry said in a post on the company's website that the milestone represents another significant step toward expanded US leading-edge semiconductor capacity.

A Timeline That Slipped

Intel announced the Ohio project on January 21, 2022, with an initial investment of more than USD 20 billion for two fabs in Licking County and a potential total of up to USD 100 billion over a decade, if the full build-out proceeds and further CHIPS Act funding comes through. The initial phase was to bring about 3,000 permanent Intel jobs and 7,000 construction jobs. The site, of nearly 1,000 acres, can hold eight fabs, and the plan was for production to start in 2025.

Intel has since pushed that back and now aims to finish construction of the first fab in 2030, which leaves the project at least five years behind its original schedule even as demand for advanced chips has surged. A second Ohio fab is planned for completion in 2031 at the site, just northeast of Columbus.

The delay reflects a broader recalibration of the company's foundry ambitions under Chief Executive Lip-Bu Tan. The Ohio plant is one part of a large build-out, begun under former CEO Pat Gelsinger, to make chips for outside customers.

When Tan took over in 2025, his turnaround strategy was more cautious. He chose to wait for customer demand before going ahead with ambitious fab plans.

Progress in Arizona

By late 2025, Intel was in high-volume production at its Arizona fab, making its most advanced 18A chips. The head of Intel Foundry said on Wednesday that construction and tool installation are under way at the next Arizona fab, with operations beginning by the end of 2028.

Intel has yet to land a major external customer for the 18A chips coming out of Arizona. It is using them to make its own processors for devices. The company once dominated chip manufacturing, but major delays with its 7-nanometer and 10-nanometer nodes triggered the worst year in its stock's history, in 2024. Customers have been reluctant to commit again since.

The Search for Customers

Intel still needs customers to make the investment pay off. In September, reports surfaced that SK Hynix, the world's leading maker of high-bandwidth memory, was in talks to lease some foundry space at Intel's Ohio site to make memory chips. Neither company confirmed any plans.

Demand for AI chips has strained the industry's leading contract manufacturer. Taiwan Semiconductor Manufacturing (NYSE:TSM) cannot make chips as fast as customers want them, and an analyst at a large brokerage said competition for space on its production lines is extremely fierce, even for the biggest chip designers such as Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Apple (NASDAQ:AAPL) and Broadcom (NASDAQ:AVGO).

An analyst at a technology research firm said Intel offers customers a possible alternative source for chip production. He said customers want a second source that gives them leverage with that manufacturer on pricing, and that all the big ones have been testing at Intel.