Intel (INTC) won’t be meeting its initial timeline for 2025 completion of its $20 billion chip-manufacturing project in Ohio.
The Wall Street Journal first reported Thursday that construction won’t be finished until late 2026, attributing the delay to a challenging chip industry and the slow rollout of U.S. government grant money to grow the domestic industry.
Intel spokesman William Moss told Investopedia Friday that typical construction timelines for semiconductor manufacturing facilities are between three and five years from groundbreaking, “depending on a range of factors. ” Intel broke ground on the Ohio project in September 2022.
“While we will not meet the aggressive 2025 production goal that we anticipated when we first announced the selection of Ohio in January, 2022, construction has been underway since breaking ground in late 2022 and we have not made any recent changes to our pace of construction or anticipated timelines,” Moss said Friday in an email.
Moss said the company currently has between 800 and 900 construction workers on the site and expects to have several thousand by the end of the year and ultimately create 7,000 construction jobs.
Intel shares were down 2% at $42.52 at around 1:00 p.m. ET Friday. They have fallen 11% this year.