Intel has postponed the opening of its Ohio chip plants from 2025 to 2030 due to financial losses and market alignment necessities. The firm reported an $18.8 billion loss in 2024 and faces challenges from competitors like TSMC and Nvidia. The company is also scaling back projects in Europe and Malaysia, while receiving government support to boost production in the U.S.
Intel Corporation, a leading American semiconductor manufacturer, has announced a delay in the completion of its significant $28 billion chip manufacturing project in Ohio. Initially scheduled to commence production in 2025, the timeline has now been extended to 2030. The company’s decision reflects a cautious approach to align production with market demand.
Intel Foundry Manufacturing’s general manager, Naga Chandrasekaran, emphasized the importance of synchronizing production with both the company’s operational requirements and broader market needs. He stated that construction will proceed at a reduced pace, while allowing for an increase in speed if customer demand justifies it.
In the fiscal year ending 2024, Intel experienced a substantial net loss of $18.8 billion, highlighting ongoing struggles as it attempts to maintain competitiveness within the rapidly evolving semiconductor landscape, increasingly dominated by companies like TSMC and Samsung.
The firm has also encountered unexpected competition from Nvidia, which has risen to prominence in the AI chip sector. Following this turbulent period, Intel CEO Pat Gelsinger was removed from his position in December after the board expressed a lack of confidence in his strategic directions.
Amid these challenges, the United States government approved a $7.9 billion incentive package to foster semiconductor production domestically. However, Intel has similarly postponed plans for new factories in Europe and scaled back on projects in Malaysia due to lower than anticipated demand.
In summary, Intel is rescheduling its major chip manufacturing project in Ohio to 2030 due to current market conditions and financial losses. The company continues to face fierce competition in the semiconductor industry and has made strategic shifts to adapt to these challenges. The support from the U.S. government highlights ongoing efforts to enhance domestic semiconductor production amid broader industry dynamics.
Original Source: www.malaymail.com
