Intel Advances Ohio Chip Plant Construction Despite Delays

Intel has reached a new construction milestone at its semiconductor manufacturing complex in New Albany, Ohio, as the company works to expand its chipmaking capacity for external customers. On October 21, 2026, Intel reported progress on the long-delayed project, with production now targeted for 2030 or 2031, despite growing demand for advanced chips driven by artificial intelligence.

The company announced that construction crews had installed the facility's first major structural truss, marking the start of another phase of work. Intel originally expected the Ohio plant to begin delivering chips in 2025, when it unveiled the project in 2022.

Intel Foundry head Naga Chandrasekaran described the milestone as part of the company's effort to expand domestic semiconductor manufacturing capacity.

"This represents another significant step toward expanded U.S. leading-edge semiconductor capacity," Intel Foundry head Naga Chandrasekaran wrote in a post on the company's website.

The Ohio development remains part of Intel's broader manufacturing expansion, although the company must secure external customers to support its foundry investment. A second factory is planned at the same site, with completion targeted for 2031, according to the company's reported timeline.

In September, reports indicated that SK Hynix, a leading manufacturer of high-bandwidth memory, might lease space at the Ohio facility to produce memory chips. Neither Intel nor SK Hynix confirmed an agreement or disclosed a finalized plan.

The delays reflect a more cautious approach to Intel's foundry business under CEO Lip-Bu Tan, who took over in 2025. The strategy differs from the ambitious expansion initiated under former CEO Pat Gelsinger, as Intel now places greater emphasis on securing customer demand before committing to additional manufacturing capacity.

Intel has also continued expanding its Arizona operations. The company reached high-volume production of its advanced 18A chips at an Arizona facility by late 2025, but those chips have primarily been used in Intel's own processors rather than products for major external customers.

Chandrasekaran also said on October 21 that operations at Intel's next Arizona fabrication plant are expected to begin by the end of 2028. That schedule places the Arizona project ahead of the delayed Ohio facilities.

Intel's challenge comes after manufacturing setbacks involving its 7- and 10-nanometer process technologies weakened its competitive position. The company's stock recorded its worst year ever in 2024, according to the source report, while customers remained reluctant to commit to its foundry services.

Meanwhile, demand for AI chips has increased pressure on Taiwan Semiconductor Manufacturing Co. to provide manufacturing capacity. Major chip designers, including Nvidia, Advanced Micro Devices, Apple and Broadcom, compete for access to TSMC's production lines, according to Mizuho Securities analyst Jordan Klein.

Klein described the competitive conditions facing companies seeking manufacturing capacity.

"competition is extremely fierce," according to Mizuho Securities analyst Jordan Klein.

The source report cited Klein's assessment of competition for access to TSMC's manufacturing lines as demand for advanced semiconductors grows.

TechInsights analyst Dan Hutcheson said Intel could offer chip designers another manufacturing option as they seek alternatives to relying on a single supplier.

"People want a second source to be able to twist TSMC's arm and keep them honest on pricing," TechInsights analyst Dan Hutcheson said. "All the big ones have been testing there."

Intel has yet to secure a major external customer for its 18A chips, leaving the company reliant on internal demand while it develops its foundry business. The Ohio plant's construction progress marks a step forward, but its production schedule remains years behind the original target.