The Intel Plant Production is Delayed Until 2030.
Brand New Day
_________________________________
A few miles east of our home in New Albany is the groundwork for the Intel chip facility. Perhaps the largest construction project in the history of Ohio. It has changed the landscape of central Ohio from farms to high tech centers. Intel comes after Google, META and Amazon to the New Albany business park. From the perspective of one observer, a remarkable creation by the city of New Albany.
The real challenge will be how to make the most of all of this land of Intel that carved itself into the Ohio countryside, displacing many farmers at the same time making many wealthy.
Current PR from Intel states that the plant is being postponed awaiting better market conditions. The PR Release from Intel is vague to say the least. What is Intel really saying?
* * *
Might the Intel facility built so far create something of value? What is happening in the five years between now and then?
Intel says they can not create anyting until 2030.
This is a long time in the current world,
Is there a place with what Intel in Ohio has?
* * *
Anyone who doesn’t believe me, simply get off 161 on Mink Road and go north a mile or so and look at the great cranes off to the left. A city of them. I’ve made this drive many times showing family and friends the vast Intel facility. As vast as a John Ford western placed in central Ohio. Or something almost to this scale.
* * *
A big question: how to make the most profit with what Intel has already created in Ohio. Or, is Ohio to wait for five years until Intel goes online? In effect, there is a huge technology piece in Ohio that is sitting and stalled. The greatest project of technology in the state’a history.
Should there be any action on the part of the state or private citizns in Ohio as far as initia discussions and then meetingss and then plans on the contribution to Ohio over the next five years. If any.
Are there any projects it might undertake during this “down” time before they go live, online? Or, is the next five years a simply down time for them as they look for the best market conditions to get back into the market as their PR person says. But what does this mean? It is as clear as mud.
* * *
It’s a question that needs to be asked in Central Ohio.
The “elephant in the room” question lingering in the background of the upcoming Ohio governor’s race. In some ways, it seems to me.
I’ve watched the construction of one of the greatest technology sites in the world. Seen videos of the proposed campus. A great chip factory. But stopped until 2030 pending market conditions. Completion pushed back five years.
* * *
Might it be time to consider local acquistion of the current Intel chip plant?
Something that a current Columbus resident and candidate for governor should look into? An issue in the next election.
The interests of Columbus (Central Ohio, Ohio and the nation) might be served by taking more control of the Intel facility and what might be used of the site so far. A scenario is that the project might move ahead strategically as a single unit than as part of the overall Intel Corporation.
The year 2030 is forever in today’s fast-paced world.
* * *
A large question it seems to me is whether Columbus (Central Ohio, Ohio) should wait for Intel to make a decison in 2030 as they state in their press release. Or, take action to review where project stands from an engineering perspective. Meeting with top executives on both sidess.
Should the Intel work done so far be purchased by a business partnership? Then, directed towards other clients in the New Albany Business Park area such as Google, META and Amazon. Among other leading high tech companies.
What might be produced now by the chip plant? Is anything produced by the plant now? How far away is any production? The press release from the Intel VP is incredibly vague.
* * *
Might Central Ohio, Columbus and New Albany consider some new ownership or relationship to the Intel Project? Perhaps aligning it more to the needs of other big players next to the Intel plant: META, Google and Amazon. Nextdoor neighbors to the Intel plant. All in the New Albany business park area.
At least some contact should be made with Intel by appropriate civic leaders it seems to me. More information is needed than the slim information in the recent press release. This information can be submitted with the guarantee of non-disclosure of identity.
___________________________
Comment From a Neighbor
“My theory is that they will do the minimum to keep their chips act money. This will be the minimum build out of the plant to produce chips. The rest of the campus that was supposed to have R&D, office space for feeder companies will not happen as Intel has signaled it wants to sell off manufacturing. My guess is that they will sell off the plant once it is built and they meet the terms of their chips act grant. There will not be a flood of high tech workers into the New Albany and the redevelopment of the Discover call center and the acquired land for the hamlet will sit. Economic Development should focus on attracting new and small to medium sized businesses to the area. This was something they were doing with their Innovate New Albany program by providing cheap office space. However they ended that portion of the program and moved into just offering a cobranded coworking space at 6x the previous rent, making it a challenge for startups and small business to get space. New Albany does have a ton of open office space, but landlords want to lease 5k sq ft+ and there are very few spaces for retail in New Albany proper at a reasonable rate.”
Comment From A Friend
Bottom line: I don’t think Intel will be an ongoing business by 2030. The question is, who will swoop in and buy the distressed assets? It missed the R&D boat and really can’t compete with TSMC/Nvidia and (yes) even AMD going forward. Here’s the ‘official marketing pap.
“Intel is slowing down its capital expenditures (CAPEX) for its Ohio chip plant primarily due to financial challenges and market conditions. The company has delayed the completion of its $28 billion Ohio One semiconductor manufacturing site to align its investments with demand forecasts. The first factory, originally planned for 2025, is now expected to be operational between 2030 and 2031, with the second factory following in 2032.
Key reasons for this slowdown include:
• Market Demand: Intel does not anticipate a significant rise in demand for production capacity in the near term. This cautious approach allows the company to align factory operations with customer needs and avoid overbuilding.
• Financial Challenges: Intel has faced significant financial strain, including a net loss of $18.8 billion in 2024, declining sales, and competitive pressures from rivals like TSMC and Nvidia. To manage costs, the company has reduced CAPEX and adopted a more measured investment strategy.
• Cost-Saving Measures: Intel has implemented extensive cost-cutting efforts, such as workforce reductions, dividend suspensions, and scaling back on aggressive investments in chip manufacturing. These measures are part of a broader plan to stabilize its balance sheet and regain profitability.
Intel has emphasized that construction will continue at a slower pace and could be accelerated if market conditions improve. While these delays help manage short-term financial risks, they have raised concerns about the economic impact on Ohio and Intel’s ability to compete in the rapidly evolving semiconductor industry.”