GuShiio.com ① Intel announced that it will delay the opening of a chip manufacturing plant in Ohio. It now expects the first plant to be put into production in 2030 or the following year, compared with the original plan for 2025;
② Intel’s vice president of OEM manufacturing said that the delay was to keep the production of fab consistent with business needs and market needs;
③ In recent years, Intel has failed to catch up with the artificial intelligence boom and its performance has declined, making the company a potential acquisition target.
Cailian News, March 1 (Editor Zhou Ziyi)Troubled chipmaker Intel announced on Friday (February 28) that it will delay opening a chip-manufacturing plant in Ohio.
In 2022, Intel promised to invest up to US$100 billion to build Ohio One, a huge chip manufacturing complex in Ohio, including eight manufacturing plants, to increase semiconductor production capacity. It was originally planned to start production in 2025.
However, according to the latest timetable, the company said that it will not complete the construction of Ohio One’s first fab, Mod1, in New Albany until 2030 and begin operations that year or the following year; the second fab, Mod2, may be completed in 2031 and will begin operation and production the following year.
Naga Chandrasekaran, Intel’s vice president of foundry manufacturing and global operating officer, said in a press release,”As we continue to invest in our U.S. factories, I believe it’s important to align our fab production with our business needs and broader market needs. This is what we have always done because it allows us to manage our capital responsibly and adapt to the needs of our customers.”
It is worth mentioning that the project actually had an extension nearly a year ago. In March last year, Intel stated that both Mod1 and Mod2 were scheduled to be completed between 2026 and 2027 and will be officially put into operation about a year later.
Performance continues to fail
Intel has long been regarded as the world’s leading semiconductor manufacturer. But in recent years, the giant has gradually lost this status, mainly because it failed to catch up with the artificial intelligence craze, and Intel’s marginal position has caused the company’s performance to decline.
The company has been considering slowing sales while also trying to delve into its capital-intensive chip-manufacturing business.
Last August, its share price suffered its biggest one-day drop in 50 years after the company reported disappointing quarterly results. The poor results were accompanied by plans to lay off 15% of Intel’s employees and suspend dividend payments to shareholders starting in the fourth quarter.
Throughout last year, the company’s share price was even more “halved”. All this led to the firing of Pat Gelsinger, the company’s former CEO, in December last year.
The company has also become a potential acquisition target due to its long-term loss situation. In September last year, it was reported that chip maker Qualcomm intended to acquire some of Intel’s chip design division. Last month, some media pointed out that Broadcom is currently closely reviewing Intel’s chip design and marketing business. At the same time, TSMC is also studying whether to control some or all of Intel’s chip factories through a consortium of investors.
