Intel’s plants delayed 2 years; will start production in 2027

NEW ALBANY — Con- struction on Intel’s silicon chip factories just outside Columbus is under way, but a report sent to state officials shows production will start at least two years later than originally expected.

Both of Intel’s semicon- ductor chip plants won’t be finished until 2026 or 2027, and they won’t be opera- tional until 2027 or 2028, the company said in a report to the state. During a cere- monial groundbreaking in September 2022, Intel said the plants would be opera- tional in 2025.

The revised construc- tion timelines are part of an annual report Intel is required to send to the Ohio Department of Development as part of its tax incentive agreements. It outlines the factories’ progress and details how Intel is spend- ing money in Ohio.

Earlier announcements from both Intel and Gov.

Mike Dewine’s office said the project would be done in 2025. But when asked Tuesday about the construc- tion, an Intel spokesperson denied there was a delay.

“Our timeline has always been three to five years,” said Elly Akopyan, an Intel spokesperson.

Reports of a delay first sur- faced in February when the Wall Street Journal reported construction wouldn’t be finished until late 2026. At the time the delay was attributed to “market challenges and the slow rollout of U.S. government grant money to grow the domes- tic industry.”

Dewine’s promised $2 billion in incentives to land the $20 billion Intel project. That includes about $1.3 billion in direct cash incentives from the state’s development department and 30-year job-creation tax credits worth $650 million.

The federal CHIPS Act is also expected to provide Intel funding for the Ohio plants.

According to Intel’s report, the company has already spent $1.5 billion in Ohio and has already signed contracts to spend another $3 billion.

So far Intel has spent $1 billion on its first semicon- ductor plant, according to the report. This includes leveling the ground, pouring concrete and doing about 70% of the infrastructure needed for utilities such elec- tricity and water at the site.

Intel has spent $400 mil- lion on the second semiconductor plant and is still preparing for the first major concrete pour.

The company is also pouring the foundations for an office building nearby, the report said. Intel also says it is now working with 350 suppliers in Ohio.

Once finished, Intel is expected to employ about 3,000 people at its Ohio factories, creating $405 million in annual payroll. The company is expected to spend more than $20 billion in the state by the end of 2028.