Intel Reaffirms Ohio Chip Plant Despite Long Delay
Company Faces Pressure From Sen. Moreno Over 2030 Timeline
Key Takeaways:
- Intel reaffirmed plans for its delayed Ohio semiconductor plant after Sen. Bernie Moreno pressed the company for details on the project now postponed until at least 2030.
- The $20 billion site, backed by $2 billion in state incentives and once set to open this year, is central to U.S. chipmaking goals under the 2022 Chips Act.
- Intel’s Sept. 30 statement pledged long-term commitment but did not address Moreno’s questions on economic impact or possible reimbursement for Ohio taxpayers.
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Intel Corp. said that it remains committed to its plans for a sprawling chip manufacturing plant in Ohio after Republican U.S. Senator Bernie Moreno pressed the company for more information about delays in the multibillion-dollar project.
In a letter last week to Intel CEO Lip-Bu Tan, Moreno demanded an update on the projected timeline for completing the factory outside Columbus that’s been delayed until at least 2030, well past the originally expected opening this year. The senator also requested an assessment of the economic impact to Ohio from the delays and gave the company 10 days for a response.
When asked about Moreno’s letter, the company said in a statement Sept. 30 that it remained “committed to advancing U.S. technology and manufacturing leadership.”
“We continue to work closely with local stakeholders, the Ohio congressional delegation and the state of Ohio to advance the needs of the state and Intel’s priorities,” the company said in the statement provided by a spokesperson. The project, dubbed Ohio One, “remains an important part of our long-term plans to expand leading-edge manufacturing on U.S. soil.”
Moreno’s demands for information about the Columbus plant emerged a month after the U.S. government moved to acquire what’s expected to become a 10% stake in the struggling chipmaker under a plan backed by President Donald Trump. That investment materialized last month within days followinga meeting between Trump and Tanat the White House, with the president taking credit for pressing the company into offering the government equity.
Shares of Intel are up more than 66% this year, propelled by the U.S. investment as well as agreements with Nvidia Corp. and SoftBank Group Corp. to take stakes in the company.
Intel announced in February that it would push back the opening of its Ohio site to 2030. The decision marked a blow to the company’s comeback bid and threatened to undermine the broader U.S. goal of expanding manufacturing through the bipartisan Chips and Science Act signed by then-President Joe Biden in 2022. Biden attended the plant’s ground-breaking that year.
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In his letter, Moreno said he wanted to “ensure that the ratepayers and taxpayers in the state of Ohio are not being taken advantage of and to ensure that this investment is not a charade or worse potential fraud.” He also asked for a proposal for how Intel could “mitigate any expense” for Ohio and state taxpayers associated with delays in the plant.
The company’s response Sept. 30 did not address the questions about the economic impact from the plant’s delay and possible compensation for the state. Moreno said the state had provided $2 billion in public incentives along with nearly $700 million in new infrastructure.
Intel, struggling with shrinking sales and mounting losses, has been scaling back efforts to add more manufacturing capacity. The Ohio site has been a symbol of the company’s hopes for a turnaround — and a broader U.S. push to rebuild the country’s domestic chip production. Intel has had ambitions to turn it into the world’s largest semiconductor facility.
In its statement Sept. 30, Intel said that it would “continue to have flexibility to adjust timelines based on customer demand.”
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