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Intel delays $20 billion Ohio project, citing slow chip market - WSJ

Published 02/01/2024, 05:51 PM
Updated 02/01/2024, 07:21 PM
© Reuters. Rendering of Intel's semiconductor factory now under construction in New Albany, Ohio, U.S., in this undated handout image. Intel/Handout via REUTERS

(Reuters) -Intel is delaying the construction timeline for its $20 billion chipmaking project in Ohio amid market challenges and the slow rollout of U.S. grant money, the Wall Street Journal reported on Thursday.

Its initial timeline had chip-making starting next year. Construction on the manufacturing facilities now is not expected to be finished until late 2026, the report said, citing people involved in the project.

Shares of the chipmaker were last down 1.5% in extended trading.

"We are fully committed to completing the project, and construction is continuing. We have made a lot of progress in the last year," an Intel (NASDAQ:INTC) spokesperson said, adding that managing large-scale projects often involves changing timelines.

© Reuters. Rendering of Intel's semiconductor factory now under construction in New Albany, Ohio, U.S., in this undated handout image. Intel/Handout via REUTERS

Uncertain demand for its chips used in the traditional server and personal computer markets had led the company to forecast revenue for the first quarter below market estimates late last month.

This came as a shift in spending to AI data servers, dominated by rivals Nvidia (NASDAQ:NVDA) and aspiring AI competitor Advanced Micro Devices (NASDAQ:AMD), sapped demand for traditional server chips - Intel's core data center offering.

Latest comments

High demand to add factories before the shares tanked...now same delay tactic
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