NEW ALBANY, Ohio — What was once hailed as the beginning of the “Silicon Heartland” is now at a crossroads. Three years after President Joe Biden, Intel executives, and Ohio leaders gathered to break ground on a $28 billion semiconductor project, not a single Intel factory in Ohio has opened its doors.
Construction equipment still rolls across Intel’s Ohio One campus, but the momentum has slowed dramatically. Originally scheduled to begin producing chips in 2025, Intel now says production may not start until 2030 or 2031.
At the 2022 groundbreaking, then-CEO Pat Gelsinger projected that Intel’s investment could swell to $100 billion and eventually include as many as 10 factories in Ohio. Today, the company is still searching for customers for its Ohio-made chips.
“Things are very much up in the air,” said Zach Schiller, research director at Policy Matters Ohio. “There are some people who think it might not happen at all, and that's quite possible.”
Despite skepticism, Intel has already invested about $7 billion in Ohio and continues to pour concrete, erect steel, and prepare support facilities. The company says it will spend another $1 billion in 2025 to keep construction moving.
“With approximately $7 billion invested in Ohio through its fabrication plants project, Intel’s Ohio One facility is on track to produce chips made here in Ohio,” said Dan Tierney, spokesman for Gov. Mike DeWine.
Intel CEO Lip-Bu Tan has framed the delays as part of a “systematic approach” to building a U.S. foundry business. On a July earnings call, Tan said Intel must find a “meaningful external customer” and prove its ability to deliver products on time.
“Intel is committed to advancing U.S. technology and manufacturing leadership, and Ohio One remains an important part of our long-term plans to expand leading-edge manufacturing on U.S. soil,” an Intel spokesperson said. “Based on the progress we have made in Ohio, we continue to have flexibility to adjust timelines based on customer demand.”
Last month, President Donald Trump announced that the federal government will take a nearly 10% stake in Intel, using $8.9 billion from CHIPS Act funds and other programs. Of that, at least $1.5 billion will go directly to the Ohio project, according to the Commerce Department.
Supporters see the move as vital to ensuring America reduces reliance on foreign-made semiconductors, a product critical to national security.
Republican Sen. Bernie Moreno said the investment ensures Ohio won’t be left with a half-built factory. “It means it's going to happen,” Moreno said during an Aug. 29 stop in Columbus. “It means that we can rally the troops to get them customers.”
Sen. Jon Husted, who helped land Intel during his time as lieutenant governor, added that while the government stake is helpful, competition remains fierce. “They still have to innovate. They still have to prove that they can outcompete the other chip fab manufacturers across the globe,” Husted said.
Ohio has backed the project with more than $2 billion in grants, infrastructure, and tax incentives. JobsOhio, the state’s private economic development agency, has also contributed $150 million.
Some analysts, however, warn that the government’s direct role may not solve Intel’s core problem: securing reliable customers.
“It doesn't really solve the overarching problem,” said Ryuta Makino, an analyst with Gabelli Funds. “If Intel doesn't find a customer in 2026 or 2027, then I could see the Ohio fabs being canceled outright.”
Others fear the government’s involvement could complicate Intel’s ability to innovate freely. Greg Lawson of the Buckeye Institute said: “When the government gets involved, does the company make decisions because they're being innovative or are they making political decisions? The thing that keeps America at the tip top of innovation is that we don't do that... when you start blurring those lines, you run the risk of that ending.”
Meanwhile, worker advocacy groups remain wary. Bailey Sandin of Chips Communities United said the federal stake signals distress rather than strength. “Ultimately it just shows that the company is on life support,” Sandin said. “The future that Intel has promised... It's increasingly starting to look like not a great deal.”
For now, construction continues in New Albany, with crews pouring foundations and hiring Ohioans for training at Intel facilities across the country. But the company faces a critical test: securing customers within the next two years.
If Intel succeeds, Ohio could yet become the heart of America’s semiconductor renaissance. If it fails, billions in taxpayer-backed incentives could leave the state with unfinished factories—and a broken promise.
Originally reported by Max Filby and Maria DeVito in The Columbus Dispatch.
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