Intel Corp is further postponing the opening of its much-anticipated semiconductor complex in Ohio, with the first plant now not expected to be operational until 2030 or 2031, marking a significant setback to the chipmaker's expansion plans.

The $28 billion project, which was originally scheduled to begin operations this year, has been delayed by at least half a decade. The completion of a second plant at the New Albany site has been pushed back to 2031, with operations potentially starting the following year.

"As we continue to invest across our US sites, it's important that we align the start of production of our fabs with the needs of our business and broader market demand," said Naga Chandrasekaran, vice president and general manager of Intel Foundry Manufacturing. "This has always been our approach, as it allows us to manage our capital responsibly and adapt to the needs of our customers."

In a message to employees, later shared in a press release, Chandrasekaran added: "We are taking a prudent approach to ensure we complete the project in a financially responsible manner."

The struggling chipmaker has been scaling back efforts to add more manufacturing capacity amid shrinking sales and mounting losses. The Ohio site had been symbolising both Intel's comeback hopes and a broader US push to rebuild domestic chip production, with ambitions to develop it into the world's largest semiconductor facility.

Intel's plans have been in flux since the company ousted its chief executive officer Pat Gelsinger last year and has yet to name a permanent replacement. Investors have been speculating that the company might be sold in pieces – a scenario that has contributed to a stock rebound of about 20 per cent this year after a steep decline in 2024.

Last year, Intel laid off 15 per cent of its workforce, suspended dividends and initiated extensive cost-savings plans involving significant cuts to capital expenditure. The company's finance chief David Zinsner told Reuters last month that Intel aims to ensure operating expenses are at roughly $17.5 billion for 2025.

---