Intel passes milestone at Ohio chip fab running five years late

First structural truss installation marks construction progress, but original 2025 target pushed to 2030

By LineZotpaper

Published21 October 2026

Read Time2 min

Sources2 outlets

Intel has installed the first major structural truss at its chip fabrication plant in New Albany, Ohio, a milestone for a project now running at least five years behind schedule. The company originally expected the factory to start delivering chips in 2025 but now aims for 2030 completion, reflecting a more cautious turnaround strategy under CEO Lip-Bu Tan.

Intel announced Wednesday that crews have installed the first major structural truss at the Ohio site, signalling that the next phase of construction has begun. "This represents another significant step toward expanded U.S. leading-edge semiconductor capacity," said Naga Chandrasekaran, head of Intel Foundry, in a company blog post.

The milestone comes amid a broader recalibration of Intel's foundry ambitions. When the project was announced in 2022, it was expected to be operational by 2025. That timeline has been pushed back, with a second Ohio fab now planned for completion in 2031. The delay coincides with surging demand for advanced chips driven by artificial intelligence, and with customers struggling to secure capacity at Taiwan Semiconductor Manufacturing Co. (TSMC), the dominant manufacturer.

Intel has yet to land a major external customer for its most advanced 18A chips, which are currently in high-volume production at its Arizona factory and are being used for Intel's own processors. In September, reports emerged that SK Hynix, the world's leading maker of high-bandwidth memory, could lease space at the Ohio site, but neither company has confirmed any plans.

Industry analysts see a potential opening for Intel. "People want a second source to be able to twist TSMC's arm and keep them honest on pricing," said Dan Hutcheson of TechInsights, adding that "all the big ones have been testing there." Mizuho Securities analyst Jordan Klein noted that even for large chipmakers like Nvidia, AMD, Apple and Broadcom, competition for TSMC's production lines is extremely fierce.

Intel's foundry business has been central to its turnaround following delays with its 7- and 10-nanometer nodes, which contributed to a difficult 2024. Chandrasekaran also announced that operations at Intel's next fab in Arizona are expected to begin by the end of 2028.

Analysis

Why This Matters

The Ohio fab's delay underscores the gap between US chip manufacturing ambitions and execution, even as demand for advanced semiconductors surges.
Intel's struggle to land external customers for its 18A process raises questions about whether its foundry business can compete with TSMC.
A successful Intel foundry could give major chip buyers an alternative supplier, potentially reducing pricing pressure and supply chain risk.

Background

Intel was once the dominant force in chip manufacturing but lost ground after repeated delays with its 7- and 10-nanometer manufacturing nodes. The Ohio project was announced in 2022 under former CEO Pat Gelsinger as part of a multibillion-dollar foundry expansion aimed at making chips for outside customers. Gelsinger pushed the strategy aggressively, but the company's financial struggles and a challenging market led to a leadership change. Lip-Bu Tan took over in 2025 and adopted a more cautious approach, waiting for customer commitments before forging ahead with new capacity. Intel's Arizona fab is currently producing 18A chips, but only for internal use.

Key Perspectives

Intel: The company is proceeding with its construction milestones and emphasising its role in expanding US semiconductor capacity. CEO Lip-Bu Tan's strategy prioritises matching supply to confirmed demand rather than building ahead of orders.

Industry analysts and potential customers: Many large chip companies, including Nvidia, AMD, Apple and Broadcom, face intense competition for TSMC's production lines. A viable Intel foundry could provide a second source that gives pricing leverage and supply diversification. Analysts note that customers have been testing Intel's process.

Critics/Sceptics: Intel has not yet announced a major external customer for its 18A chips. The company's past manufacturing delays have eroded customer confidence, and the five-year Ohio delay may reinforce reluctance to commit until Intel proves it can deliver at scale.

What to Watch

Whether Intel signs a major external customer for its 18A chips produced in Arizona.
Any confirmation from SK Hynix about potential collaboration at the Ohio site.
TSMC's capacity constraints and pricing trends, which may drive customers toward Intel as an alternative.

Sources

Intel hits construction milestone at Ohio chip fab that’s at least 5 years behind schedule · Tech
Intel hits construction milestone at Ohio chip fab that’s at least 5 years behind schedule · US Top News and Analysis

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim

Partly supportedIntel’s Ohio fab is five years behind schedule.Tech: “Intel hits a milestone in the construction of its massive chip fabrication plant in New Albany, Ohio, that's running at least five years behind schedule”
Partly supportedThe factory was expected to start delivering chips in 2025 and is now aimed for completion in 2030.Tech: “When Intel first announced the Ohio factory in 2022, it was expected to start delivering chips in 2025. Intel pushed back that timeline, now aiming to finish construction in 2030.”
SupportedCrews installed the first major structural truss at the Ohio site.Tech: “On Wednesday, Intel announced that crews have installed the first major structural truss in Ohio”
SupportedNaga Chandrasekaran said the truss installation was “another significant step toward expanded U.S. leading-edge semiconductor capacity.”Tech: ““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 on Wednesday.”
SupportedThe second Ohio fab is planned for completion in 2031.Tech: “A second Ohio fab is also planned for completion in 2031 at the site, just northeast of Columbus.”
SupportedThe delay coincides with surging demand for advanced chips driven by AI and difficulty securing TSMC capacity.Tech: “a delay, that's coincided with soaring demand for advanced chips”
SupportedSK Hynix could lease space at the Ohio site, but neither company has confirmed plans.Tech: “reports surfaced that the world's leading maker of high-bandwidth memory, SK Hynix, could team up with Intel in Ohio to lease some foundry space to make memory chips at the new site. Neither company would confirm any plans.”
SupportedIntel has yet to land a major external customer for its 18A chips, which are in high-volume production at its Arizona fab and used for its own processors.Tech: “Intel was in high-volume production at its Arizona chip fab, producing its most advanced 18A chips. But Intel has yet to land a major external customer for those 18A chips coming out of Arizona. Instead, Intel is using them to make its own processors for devices.”
SupportedDan Hutcheson said, “People want a second source to be able to twist TSMC's arm and keep them honest on pricing,” and that “all the big ones have been testing there.”Tech: ““People want a second source to be able to twist TSMC's arm and keep them honest on pricing,” Hutcheson said. “All the big ones have been testing there.””
SupportedMizuho Securities analyst Jordan Klein said competition for TSMC production lines is extremely fierce, even for major chipmakers.Tech: “Even for the biggest chipmakers like Nvidia, Advanced Micro Devices, Apple and Broadcom, “competition is extremely fierce,” to get space on TSMC's factory lines, according to Mizuho Securities analyst Jordan Klein.”
Partly supportedIntel’s foundry business has been central to its turnaround, and delays with its 7- and 10-nanometer nodes contributed to a difficult 2024.Tech: “Intel hit major delays with its 7- and 10-nanometer nodes, triggering the stock's worst year ever in 2024.”
SupportedChandrasekaran announced that operations at Intel’s next Arizona fab are expected to begin by the end of 2028.Tech: “On Wednesday, Chandrasekaran also announced that operations at its next fab in Arizona are expected to begin by the end of 2028.”