Intel Delays $28 Billion Chip Manufacturing Project
Chipmaker Intel has announced a further delay in its $28 billion chip production project. On Friday, the company stated that the first factory in New Albany would not be completed before 2030 and is expected to become operational between 2030 and 2031, according to a report by Reuters.
Originally, the project was scheduled for completion five years earlier, but Intel has opted for the delay as part of its cost-cutting measures. The company has been facing significant financial pressure since entering the contract chip manufacturing business, which necessitated adjustments to balance its financials.
In a statement, Naga Chandrasekaran, General Manager of Intel Foundry Manufacturing, said, "We are making these changes to align factory operations with market demand and to manage capital responsibly."
Additionally, Intel has confirmed that the second factory in Ohio will be completed in 2031, with production commencing in 2032.
Following the announcement, Intel’s stock price initially surged by 5% but later stabilized at a 1% increase.
Previously, Intel had undertaken an extensive cost-cutting initiative, which included a 15% workforce reduction, dividend suspension, and significant cuts in capital expenditures. Intel’s Chief Financial Officer, David Zinsner, recently told Reuters that the company aims to keep operating expenses within $17.5 billion by 2025.
