Intel Delays Ohio Semiconductor Factory Opening Until 2031

Intel, the renowned chipmaker, has announced a significant delay in the opening of its new Ohio semiconductor factory, which was initially scheduled to commence operations this year. The company confirmed on Friday that construction on the plant will not be completed until 2030, with production likely to begin in 2031. This news was first reported by Bloomberg.

This delay is a setback for the United States’ ambition to become a semiconductor superpower. Intel plays a crucial role in this plan, which aims to reduce America’s dependence on Taiwan amidst threats from China.

Intel is set to receive $7.9 billion in funding from the federal government through the CHIPS Act, provided it meets specific milestones, including construction and starting production. The CHIPS Act, introduced by President Biden, received bipartisan support to bring chip production back to the U.S. However, reports suggest that President Trump is delaying payments and seeking to renegotiate terms with chipmakers, potentially hindering Intel’s progress.

Although Intel already has domestic chip manufacturing capabilities, primarily for its own chipsets, its business of producing chips for other clients has struggled to gain traction. Experts attribute this to the company’s inability to cater to other companies’ needs, unlike Taiwan’s TSMC, the world’s largest chipmaker. Recently, President Trump declined to comment on whether the U.S. would intervene if Taiwan were invaded by China. Some estimates warn that a Chinese takeover of Taiwan could result in the U.S. economy losing 8% of its GDP and countless jobs.

Intel’s role in the U.S. chip renaissance was always a gamble. The company, once a Silicon Valley icon, has missed significant technological shifts, notably declining to develop a mobile chip for the original iPhone. This decision allowed Arm and Apple to capitalize on the opportunity. Intel also failed to invest heavily in GPUs, enabling Nvidia to become one of the world’s largest companies and dominate the AI boom.

Intel’s attempts to expand into mobile cellular antennas ultimately ended in abandonment, with the venture being sold to Apple, which recently launched the iPhone 16e with its first modem. Furthermore, Intel is losing ground in PCs as low-powered chips, originally designed for mobile devices, become more capable.

Recent reports suggest that Intel is considering the possibility of splitting up entirely, with its chip design business potentially being sold to Broadcom and its manufacturing side to TSMC. The company has undergone significant layoffs and shrinking sales, with its stock plummeting over 50% in the past five years. It remains unclear whether the Trump administration would permit TSMC, a foreign company, to acquire Intel’s factories.

This situation highlights how industry giants can fall from grace due to management missteps. It may also explain why today’s big tech companies are investing heavily in AI, despite uncertain returns, to avoid suffering the same fate as Intel. They are eager to avoid being the next Intel, and this fear is driving their aggressive pursuit of innovation.