Intel announced on Friday that the opening of its two chip-making plants (or "fabs") under construction in Ohio will be delayed until 2030 and 2031. The company initially intended to open the first fab this year, but now plans to align the production start with market demand.

Naga Chandrasekaran, Intel's head of global operations for Intel Foundry Manufacturing, explained in a letter to employees that the delay was necessary to better align production with business needs and broader market demands. "We want to ensure that the start of production aligns with the needs of our business and broader market demand," he said.

Chandrasekaran confirmed that the basement levels of the fabs had been completed, and work is progressing on the above-ground structure. However, he noted that work would proceed at a slower pace, while still allowing for flexibility to speed up the process if customer demand dictates.

Intel had released a video in January 2025 showcasing progress on the $28 billion Ohio One campus in Licking County, Ohio, where more than 6.4 million construction hours had been spent. This included installing underground pipes and pouring over 200,000 cubic yards of concrete.

The company has stated that fully developing the Ohio site, which will eventually cover 4 square kilometers, will require an estimated $100 billion in total investment.

Intel’s struggles in recent years have been significant, with its stock price halving in 2024, a loss of 17,500 jobs, and a revenue drop from $79 billion to $54 billion. Despite this, the company has received substantial government support, including an $8 billion grant from the CHIPS and Science Act under former President Joe Biden’s administration, aimed at bolstering the U.S. semiconductor industry.

However, Intel's weakened position has prompted speculation that it could become an acquisition target. Reports suggest Taiwan Semiconductor Manufacturing Corporation (TSMC), the world’s largest chip maker, has considered acquiring some or all of Intel’s plants as part of an investor consortium or another structure. Additionally, there are rumors that Broadcom, a leading digital tech company in the U.S., is exploring the possibility of purchasing Intel’s chip-design and marketing business.

Intel’s future remains uncertain, but its Ohio plant project is poised to be a crucial part of its recovery strategy, although the extended timeline presents challenges as the company navigates a turbulent market.

For more on Intel’s Ohio chip plant and ongoing industry developments, check the latest updates.

Originally reported by David Rogers in Global Construction Review.