Intel Slows Speed of Construction of $28B in Semiconductor Plants in Ohio

Intel Corp. is once more placing the brakes on the velocity of building of two $28-billion semiconductor fabrication crops in central Ohio.

Though no revised completion dates had been introduced for the mission often called Ohio One, Intel’s chief govt officer Lip-Bu Tan stated in a July 24 earnings call that “we’ll additional sluggish the tempo of building in Ohio to make sure that spending is aligned with market demand.”

He added that “based mostly on the progress we’ve already made in Ohio we have now the pliability to speed up our work as wanted to satisfy buyer wants.”

As well as, Tan stated the corporate is canceling plans for constructing manufacturing services in Poland and Germany and can consolidate a plant deliberate in Costa Rica with bigger ones in Vietnam and Malaysia.

Intel had announced in March that it was slowing the tempo of building of the crops. On the time, Intel stated the primary of the fabrication crops, often called fabs, could be accomplished in 2030, based on the corporate.

The mission, which is being led by basic contractor Bechtel, consists of 2.5 million sq ft of buildings together with 600,000 sq ft of fresh room manufacturing house.

Gov. Mike DeWine (R) stated in an announcement that he nonetheless believes Intel will proceed with the mission.

“Intel has affirmed its dedication to Ohio as the brand new management of the corporate makes changes to its long-term technique,” he stated. 

In an annual report submitted in early 2025 to the Ohio Dept. of Growth, Intel advised officers that it spent $3.7 billion on the mission by the tip of 2024. Moreover, the corporate says greater than 6.4 million work hours had gone into the mission so far. Crews have positioned greater than 200,000 cu yds of concrete, put in 497,000 linear ft of underground conduit, put in 98,700 linear ft of underground pipe and put in 24,500 tons of rebar. 

The report additionally lists among the corporations that labored on the mission in 2024. Along with Bechtel, they embody Barnhart Plant Providers LLC, CTL Engineering inc., Currie & Brown Inc., EMH&T Inc., Geotechnical Consultants Inc., Gilbane, Linde Engineering North America, Lithko Contracting LLC, MWH-Kokosing Joint Enterprise and SSOE Group, amongst others.

The plan to construct Ohio One was introduced in 2020 when DeWine famous that Ohio had received the mission over 40 different states competing for it. 

Describing Intel’s path ahead, Ban, who was named Intel’s ninth CEO in March, stated “we have to construct capability neatly and punctiliously on a schedule that meets the wants of our clients and helps the economics of our enterprise. This strategy is essentially totally different than the trail we’ve been on over the previous 4 years.”

Additionally on the earnings name, Intel introduced it plans to put off 15% of its world workforce, which might winnow its worker rely of almost 109,000 to 75,000 by the tip of 2025.  

Bechtel didn’t instantly reply to a request for remark.