Intel announced it is delaying the construction of its Ohio One semiconductor factory project, valued at $28 billion, by about five years.
The company’s stock rose 3.6% to $23.92 on Friday, benefiting from a strong day for the chip sector overall.
Intel now aims to finish building one factory in New Albany, Ohio, in 2030, with operations commencing between 2030 and 2031, according to a company press release. Initially, production was set to begin this year. A second factory is expected to be completed in 2031, with operations starting in 2032.
“As we continue to invest across our U.S. sites, it’s important that we align the start of production of our fabs with the needs of our business and broader market demand,” Intel stated in the release. “This has always been our approach, as it allows us to manage our capital responsibly and adapt to the needs of our customers.”
“We are taking a prudent approach to ensure we complete the project in a financially responsible manner that sets up Ohio One for success well into the future,” the company added.