Intel (INTC) has announced a significant delay in the completion of its two chipmaking facilities currently under construction at its Ohio One campus, pushing the expected opening from 2026 to 2030 and 2031. This marks the second delay for the $28 billion project, which originally had a 2025 completion target. Intel Chief Global Operations Officer Naga Chandrasekaran made the announcement in an open letter to employees on Friday.

"We continue to invest across our U.S. sites, and it's important that we align the start of production of our fabs with the needs of our business and broader market demand," said Chandrasekaran. He noted that the construction timeline could be accelerated if customer demand warrants it.

The delay comes as Intel’s foundry business faces increased speculation about potential acquisitions. Reports suggest that Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chipmaker, has considered taking over some or all of Intel's chip plants. Additionally, Broadcom (AVGO) is reportedly exploring the possibility of acquiring Intel's chip-design and marketing business.

Despite the challenging period for Intel, shares remained mostly unchanged in extended trading on Friday, following a near 3% increase in the regular session. The company’s stock has lost nearly half its value in the past year.

The setback comes after Intel broke ground on the project in 2022, with the initial goal of completing construction by 2026. The project at Ohio One is critical to Intel’s strategy to regain competitiveness in the chip manufacturing sector, especially as it faces increasing competition from TSMC and other rivals. Intel’s foundry business is essential to meeting the demand for advanced semiconductor manufacturing, especially as demand for chips continues to rise globally.

In the meantime, Intel remains focused on pushing forward with other aspects of its U.S. manufacturing expansion. The company is investing heavily in bringing more chip production to the U.S., but these delays raise questions about its ability to meet the growing demand for chips in the coming years.

Intel has promised to keep stakeholders updated on the progress of its Ohio plants, noting that while construction timelines are shifting, the long-term vision remains intact.

Originally reported by Andrew Kessel in Investopedia.