Intel reached a construction milestone at its New Albany, Ohio, chip fabrication plant this week, installing the first major structural truss. The facility is now slated for completion in 2030, at least five years behind the original timeline.
Intel Foundry head Naga Chandrasekaran announced the development Wednesday. The initial 2022 announcement projected chip delivery by 2025. A second Ohio fab at the site, northeast of Columbus, is planned for 2031.
The delay reflects a strategic recalibration under CEO Lip-Bu Tan, who took the helm in 2025. Tan has adopted a more cautious turnaround strategy, waiting for concrete customer commitments before accelerating chip fabrication plans. This contrasts with former CEO Pat Gelsinger's push to build out capacity for outside customers.
Despite construction progress, Intel still needs external customers to validate its significant investment. Reports in September suggested SK Hynix, a leading maker of high-bandwidth memory, could lease foundry space in Ohio to produce memory chips. Neither company has confirmed the plans.
Intel has yet to secure a major external customer for its most advanced 18A chips. The company began high-volume production of these chips at its Arizona fab by late 2025, but currently uses them for its own processors. Operations for its next Arizona fab are expected to start by the end of 2028.
Customer hesitation reflects Intel's recent history. The company experienced significant delays with its 7- and 10-nanometer nodes, contributing to its worst stock year in 2024. Prospective clients have grown reluctant to commit to Intel's foundry services again.
Yet the market backdrop favors a foundry outsider. Record demand for artificial intelligence chips means Taiwan Semiconductor Manufacturing Co. (TSMC) cannot produce capacity fast enough. Major chipmakers including Nvidia, Advanced Micro Devices, Apple, and Broadcom face intense competition for wafer allocation on TSMC's production lines, according to Mizuho Securities analyst Jordan Klein.
Intel could offer these companies a second source for chip production. Clients actively seek alternatives to gain negotiating leverage with TSMC on pricing, said TechInsights analyst Dan Hutcheson. Major players have been testing Intel's capabilities, Hutcheson noted, but testing is not the same as committing production volume to a company that has burned them before.
