- Intel Corp.’s (INTC) stock rose 3.56% to $23.91 on Friday despite announcing delays in its New Albany, Ohio semiconductor project, with the first factory now set to operate between 2030 and 2031 and the second in 2032, shifting from an initial 2025 target.
- The company, grappling with financial issues and a CEO departure in December 2024, has received $2.2 billion of $7.8 billion from the CHIPS Incentives Program, with $1.5 billion allocated to the Ohio project, as it competes with Nvidia’s AI-chip dominance.
- Intel is slowing construction to ensure financial prudence, as stated by executive Naga Chandrasekaran, maintaining flexibility to accelerate based on demand, aiming to secure the long-term success of the Ohio One initiative.
Intel Corp.’s (INTC) stock climbed 3.56% to $23.91 in early trading on Friday, a surprising uptick given the company’s latest announcement that its ambitious semiconductor project in New Albany, Ohio, faces yet another delay, with the first of two factories now slated to begin operations between 2030 and 2031, and the second following in 2032. This shift pushes the timeline far beyond the original 2025 target set when Intel broke ground in September 2022, a reflection of the chipmaker’s broader struggles—financial woes, the abrupt exit of its CEO in December 2024, and a loss of dominance to Nvidia (NVDA), whose AI-focused chips have redefined the industry. Despite securing $2.2 billion of a promised $7.8 billion from the federal CHIPS Incentives Program, with at least $1.5 billion earmarked for New Albany, Intel is adopting a cautious stance, as Naga Chandrasekaran, executive vice president and general manager of Intel Foundry Manufacturing, emphasized the need for a “financially responsible” approach to ensure long-term viability.
The New Albany project, dubbed Ohio One, was heralded as a cornerstone of Intel’s bid to reclaim its footing in the semiconductor landscape when announced in January 2022, with the two fabs intended to bolster domestic chip production amid global supply chain pressures. However, the revised timeline – construction of the first fab completing in 2030 and the second in 2031 – signals a deliberate slowdown, with Intel maintaining flexibility to ramp up if customer demand surges. Chandrasekaran’s statement underscores this pragmatic pivot, balancing ambition with fiscal restraint as the company navigates a market where its once-unassailable position has eroded, particularly against Nvidia’s AI-driven ascendancy. The $1.5 billion in CHIPS funding already allocated offers a lifeline, yet the broader $7.8 billion package highlights the scale of federal support Intel is leaning on to stabilize its operations.
Intel’s trajectory in recent years paints a stark contrast to its historical stature as a semiconductor titan, with delays in Ohio compounding challenges that have seen it lag behind competitors in innovation and market share. The company’s decision to pace construction reflects not just internal hurdles but also a strategic recalibration in an industry where timing is critical—pushing operations to 2030-2032 risks ceding further ground in a sector increasingly defined by rapid advancements. Still, Friday’s stock rise to $23.91 suggests investor confidence, perhaps buoyed by Intel’s commitment to adapt its pace to demand signals, preserving the potential of Ohio One as a future hub. With $2.2 billion in hand and construction ongoing, albeit slower, Intel is betting on a long game to restore its relevance, leveraging federal backing to bridge the gap between its storied past and an uncertain tomorrow.
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