Why Intel says it had to delay its Ohio One project in New Albany

Intel released its annual 2024 report and 2025 forecast, addressing financial and political concerns that will affect the Ohio One plant.

Intel’s revenue by national market Intel One by Katie Maillard WCMH

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Sunday, March 30, 2025 COLUMBUS, Ohio (WCMH) by Katie Millard 

On Thursday, March 27, 2025, Intel released both reports and reaffirmed its commitment to build Intel Foundry, the semiconductor manufacturing division of the company that oversees the project underway in New Albany. Although the company said it wants Intel Foundry to become a market leader in semiconductor manufacturing, it said its strategy is “highly risky” and may not pay off.

Intel said the competitive semiconductor market and unpredictable political concerns led them to slow the completion of the Ohio facility last month. Amid financial woes, the company said it may have to continue to redirect money to existing facilities instead of construction in Ohio and abroad, and that these investments “may have additional project delays or project cancellations in the future.”

The company indicated Ohio may be least likely of the delayed projects to be canceled, listing “investing in a leading-edge manufacturing facility in Ohio” as one of its long-term plans. Ohio One is the only delayed investment in the U.S., and Intel’s federal CHIPS Act funding is an incentive to maintain the project.

“We expect to continue to benefit from government incentives, though recent U.S. government actions create uncertainty as to the receipt of awards under our existing CHIPS Act agreements and the potential for future awards in the U.S.,” Intel leaders wrote. “These incentives typically require that we make significant capital investments in new facilities or expand existing facilities and our related workforce.” 

Intel said if it is unable to afford the CHIPS Act requirements, there may be a delay or full cancelation in CHIPS funding. This is further complicated by President Donald Trump’s call to revoke the CHIPS Act entirely, although Congress has not jumped to repeal the bipartisan bill. Intel confirmed it has received only $2.2 billion of its promised $7.8 billion in CHIPS money so far, and none since January.

CHIPS Act concerns are not the only political worries Intel discussed. Trade disputes affecting its top markets have made it more difficult for the company to profit internationally. Intel also said many of its products depend on suppliers in Taiwan, some of which are made entirely abroad, so tariffs and rising tensions between Taiwan and China are posing an immediate financial threat.

“In particular, geopolitical and trade tensions between the U.S. and China, one of our largest markets, have led to increased tariffs and trade restrictions, including tariffs applicable to some of our products, and have affected customer ordering patterns,” Intel wrote.

Intel said it was disrupted by Chinese tariffs under the Biden administration, including a May 2024 hike on semiconductors. Trump initially imposed a 10% tariff on $430 billion of Chinese goods, increasing it to $20% on March 4. China, in turn, has announced retaliatory tariffs against the U.S. Both raise prices for Intel.

Other concerns Intel listed on Thursday include a fear of increased cyberattacks, the continuation of an export ban to Russia and that it owes billions in debt. Intel also has a leading-edge fabrication facility and multiple product development centers in Israel that are threatened by conflict in the area. Intel said it is not insured for business interruptions at its Israeli facilities.

Intel’s newly appointed CEO Lip-Bu Tan will address stakeholders for the first time on Monday in the opening keynote message at Intel’s two-day 2025 conference. 

See previous coverage of Intel’s delay https://connierealestateblog.blogspot.com/2025/03/httpswww.html

Connie serves all of Central Ohio including Franklin, Delaware, Fayette, Licking, Madison, Marion, Morrow, Pickaway, and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry, and Ross counties. Contact Connie Sadowski, Realtor with questions 614-943-0025 Search homes ConnieSadowski.com