11 minutes ago, Clefan98 said:

This is a significant setback for the region.

 

Intel delays opening of central Ohio chip manufacturing plant to 2030

 

COLUMBUS, Ohio -- The opening of Intel’s $28 billion chip manufacturing plant in central Ohio was delayed, again.

“We are adjusting the timeline for our two Ohio fabs,” Intel Executive Vice President Intel Naga Chandrasekaran wrote in a statement.

 

https://www.cleveland.com/news/2025/02/intel-delays-opening-of-central-ohio-chip-manufacturing-plant-to-2030.html

 

I'm sorry but there has to be an immediate investigation into this. Intel has received billions of dollars from Ohio and the Chips Act. Where is that money? 

I'm guessing this is because the Trump administration has fired the people responsible for managing the CHIPS Act. 

 

29 minutes ago, cbussoccer said:

 

I wouldn't call it a significant set back. The Central Ohio region is quite healthy already, and we have other significant newcomers to the region like Anduril that will bring thousands of new jobs. If anything, hopefully this allows us time to build up some housing stock. 

 

I still think it's a significant setback, not just because that will delay the arrival of a great many of the jobs that would be at a flagship facility like this, but also because when flagship developments are stalled or slowed, it tends to have a knock-on effect on other development--the mirror of the fact that when they're successful, they tend to bring other investment with them, too.  And IIRC a lot of communities accepted a lot of headaches and conditions to make this project possible, and those conditions are AFAIK already in effect.

 

EDIT: Also, per the other thread, the Anduril factory will be about $1B, which is big but nothing like the ostensibly $28B scale of the Intel project:

 

 

Still great for Pickaway County and Rickenbacker, not trying to take anything away from it, but the scale is still simply different.

13 minutes ago, John7165 said:

I'm sorry but there has to be an immediate investigation into this. Intel has received billions of dollars from Ohio and the Chips Act. Where is that money? 

 

Yesterday's print edition of the Dispatch went into that. Intel has not unlocked much of the funding yet as they have not met their requirements. The online article is shorter but here is an excerpt:

 

The company has received $2.2 billion of its $7.865 billion in funding as part of the federal CHIPS Incentives Program. At least $1.5 billion of that funding was set to go toward the New Albany project, according to the U.S. Department of Commerce. An agreement between Intel and the Ohio Department of Development offered the company $300 million in grants to help with the construction of each factory, as long as they were completed by the end of 2028.

 

https://www.dispatch.com/story/news/2025/02/28/intel-ohio-chip-factory-delayed-new-albany/80732342007/

 

Link to Ohio's share and requirements: https://development.ohio.gov/home/news-and-events/all-news/2023-0623-ohio-announces-finalization-of-600m-onshoring-incentive-grant-agreement-with-intel

As I've said, this will go down as one of JobsOhio's biggest blunders.

I think ultimately over the next few years, Intel and specifically this site will get bought out by a competitor.  Many rumors/hints that TSCM wants to shift/move their fabs out of Taiwan before China inevitably encroaches on them.  Whomever the competitor is, I still feel this site in the end does get completed when all is said and done.

1 hour ago, Gnoraa said:

I think ultimately over the next few years, Intel and specifically this site will get bought out by a competitor

 

Agreed.

Rallying for this projects downfall is just weird to me.

2 hours ago, Gnoraa said:

I think ultimately over the next few years, Intel and specifically this site will get bought out by a competitor.  Many rumors/hints that TSCM wants to shift/move their fabs out of Taiwan before China inevitably encroaches on them.  Whomever the competitor is, I still feel this site in the end does get completed when all is said and done.

 

Agreed. At the risk of starting political arguments (I have no intention to argue politics, so please refrain), I actually think a Trump presidency makes it more likely that this thing happens. Imposing tariffs and emphasizing the need for us to do things in-house rather that get things from elsewhere seems to bode well from a plant that is supposed to manufacture something as important as micro chips. 

 

Again, not trying to argue politics here. I'm just trying to look at the situation analytically and make an educated guess at what will happen. 

57 minutes ago, cbussoccer said:

 

Agreed. At the risk of starting political arguments (I have no intention to argue politics, so please refrain), I actually think a Trump presidency makes it more likely that this thing happens. Imposing tariffs and emphasizing the need for us to do things in-house rather that get things from elsewhere seems to bode well from a plant that is supposed to manufacture something as important as micro chips. 

 

Again, not trying to argue politics here. I'm just trying to look at the situation analytically and make an educated guess at what will happen. 

How would tariffs make this more beneficial? Those are probably a major factor in this decision since all those would do is greatly increase the cost of materials for the project. I do not think it's a coincidence that the new projected operational date happens to start shortly after this current administration would leave office. That seemed very intentional.

1 hour ago, TIm said:

How would tariffs make this more beneficial? Those are probably a major factor in this decision since all those would do is greatly increase the cost of materials for the project. I do not think it's a coincidence that the new projected operational date happens to start shortly after this current administration would leave office. That seemed very intentional.

 

With an administration that feels comfortable imposing tariffs on foreign goods, thereby making those goods more expensive here, there is a higher likelihood that there will be a higher demand for certain materials to be manufactured here as opposed to overseas. I understand the argument that construction costs may rise, but there is likely more payoff in the long term. 

 

Micro chips are deeply ingrained in our every day lives, and if tech companies can reduce the cost of items like smart phones, tablets, laptops, smart appliances, etc., by manufacturing the chips here, they will. 

 

Again, this is not meant to be a political debate and it's not meant to be an argument for or against tariffs, it's just my read on the current situation. 

 

Also, part of my thinking was that Trump has really emphasized being more self-sufficient in what we produce versus what we import so that we are less reliant on others, thereby giving us more bargaining power and security (at least in his opinion). Drilling for our own oil rather than importing it being a prime example of something he's pushed for. Manufacturing micro chips seems to fall in that same bucket. Knowing how he views international relations and bargaining/deal making, I can't imagine he would be a fan of us bringing in such a large number of microchips from area that could easily fall under Chinese control. 

 

Who knows though. You could very well be right. That's just my read on the situation.

2 hours ago, cbussoccer said:

 

Agreed. At the risk of starting political arguments (I have no intention to argue politics, so please refrain), I actually think a Trump presidency makes it more likely that this thing happens. Imposing tariffs and emphasizing the need for us to do things in-house rather that get things from elsewhere seems to bode well from a plant that is supposed to manufacture something as important as micro chips. 

 

Again, not trying to argue politics here. I'm just trying to look at the situation analytically and make an educated guess at what will happen. 

 

I think if that were the case, the Intel fab would be on a fast-track for completion. Rather, the CHIPS Act that this project is dependent on is in danger of being scrubbed. The current administration's willingness to have Taiwan-based TSMC takeover Intel factories is also contrary to the ideal of having semiconductors made in the US by US enterprise. That would be especially concerning should China make good on invading Taiwan.

7 minutes ago, cbussoccer said:

 

With an administration that feels comfortable imposing tariffs on foreign goods, thereby making those goods more expensive here, there is a higher likelihood that there will be a higher demand for certain materials to be manufactured here as opposed to overseas. I understand the argument that construction costs may rise, but there is likely more payoff in the long term. 

 

Micro chips are deeply ingrained in our every day lives, and if tech companies can reduce the cost of items like smart phones, tablets, laptops, smart appliances, etc., by manufacturing the chips here, they will. 

 

Tariffs don't make it cheaper to do business. Costs will rise regardless because the cost of producing in the US isn't going down. For example, a good costs $1 to produce and ship from elsewhere, but costs $1.50 in the US. Tariffs are applied and now the same good costs $2 to produce and ship from elsewhere. That same good is now going to be $0.50 more expensive even if the buyer now chooses to acquire said good from a US manufacturer. Even if the current administration enacts other means of making business cheaper to do in the US, those savings generally are not going to be passed down in the same way increased cost does to the consumer.

7 hours ago, Gnoraa said:

I think ultimately over the next few years, Intel and specifically this site will get bought out by a competitor.  Many rumors/hints that TSCM wants to shift/move their fabs out of Taiwan before China inevitably encroaches on them.  Whomever the competitor is, I still feel this site in the end does get completed when all is said and done.

I am optimistic the development is still going to happen. I don’t think many people appreciate how important the next generation of chips factories is for the future of humanity.
 

This delay changed my mind on Intel though. I thought it wad a bad sign when Pat got fired. But now, I think Intel is toast without some kind of revamp/reset. 
 

Foundry being spun off as some kind of joint venture with TSMC and others is probably best case scenario.

TSMC can't be the only maker of high end chips. It's in everybody's best interest that Intel gets head out of its butt and becomes competitive again in the fab space.

 

I agree it wasn't a good look when Pat was fired. I thought they were turning a corner and the Ohio foundry was part of that. No clue what will happen with them now. 

 

Intel's annual progress report filed with ODD 

 

"Intel's first Ohio factories may be delayed several years, but the chipmaker has already spent billions of dollars to make its plants a reality at the New Albany site in Licking County.

 

As of the end of 2024, Intel spent $3.7 billion and has signed contracts for another $3.2 billion in work meaning the company is already on the hook for roughly $6.9 billion, according to a progress report filed with the Ohio Department of Development last week. The report, which is part of the Megaproject Tax Credit Agreement that Intel has with Ohio, is required to be filed annually.

 

On the first of two fabs Intel intends to open on the site, construction workers have already poured 130,000 cubic yards of concrete and have begun installing 600 columns and 320 slabs, according to the report. Workers have also begun piecing together the steel trusses of the roof for the first fab. For context, 130,000 cubic yards would equate to pouring a nearly 27-foot solid concrete block over an acre.

 

On its second fab, workers have poured around 50,000 cubic yards of concrete and two cranes have been installed to help build the second facility, according to the company's report. Landscaping also began in 2024 with the company planting more than 4,500 trees and 1,400 shrubs across the property.

 

More than 430 Ohio companies have helped to support the project, including locally-based AEP Ohio, Gilbane and EMH&T, the report shows."

 

https://www.dispatch.com/story/news/2025/03/04/intel-spent-billions-on-delayed-new-albany-chip-factory-project-new-report-says/81344252007/

 

13 minutes ago, Luvcbus said:

 

Intel's annual progress report filed with ODD 

 

"Intel's first Ohio factories may be delayed several years, but the chipmaker has already spent billions of dollars to make its plants a reality at the New Albany site in Licking County.

 

As of the end of 2024, Intel spent $3.7 billion and has signed contracts for another $3.2 billion in work meaning the company is already on the hook for roughly $6.9 billion, according to a progress report filed with the Ohio Department of Development last week. The report, which is part of the Megaproject Tax Credit Agreement that Intel has with Ohio, is required to be filed annually.

 

On the first of two fabs Intel intends to open on the site, construction workers have already poured 130,000 cubic yards of concrete and have begun installing 600 columns and 320 slabs, according to the report. Workers have also begun piecing together the steel trusses of the roof for the first fab. For context, 130,000 cubic yards would equate to pouring a nearly 27-foot solid concrete block over an acre.

 

On its second fab, workers have poured around 50,000 cubic yards of concrete and two cranes have been installed to help build the second facility, according to the company's report. Landscaping also began in 2024 with the company planting more than 4,500 trees and 1,400 shrubs across the property.

 

More than 430 Ohio companies have helped to support the project, including locally-based AEP Ohio, Gilbane and EMH&T, the report shows."

 

https://www.dispatch.com/story/news/2025/03/04/intel-spent-billions-on-delayed-new-albany-chip-factory-project-new-report-says/81344252007/

 

Six more years? How soon is it this project gets filed in the "Abandoned Projects" thread on UO.

4 hours ago, John7165 said:

Six more years? How soon is it this project gets filed in the "Abandoned Projects" thread on UO.

It seems like Intel is at a fork in the road with their 18A process. If that proves successful i would have a lot more faith in them operating the fabs.

 

However, if that doesn’t come to fruition then i would be rooting for them to complete as much work on site as they possibly could. I’m sure we’re not the only ones with eyes on the project. Potentially getting a deal on a FAB/FABs site with existing permits, tax abatements, and a community prepared to welcome it has to catch the eye of a prospective buyer. Half the battle with these mega projects is getting through the red tape.

16 minutes ago, columbus17 said:

TSMC is superior to Intel in every way - we should work with the best, not "ours" when it comes at a cost. The only reason Intel is still around is government support and funds. Without it they are finished.

 

If Intel falls through and we somehow manage to get TSMC in Ohio, I can't say I would be mad. I support competition as much as anyone else, but TSMC literally has some of the most advanced computing knowledge in the entire world. This is not a matter of opinion, just the fact of decades of intense specialization and research in Taiwan compared to other countries. If we can help bring some of their new US operations to Ohio, that would make the state critically important to the entire domestic technology supply chain. Maybe this is the best-case outcome if the CHIPS Act is out the door.

Just now, sonisharri said:

 

If Intel falls through and we somehow manage to get TSMC in Ohio, I can't say I would be mad. I support competition as much as anyone else, but TSMC literally has some of the most advanced computing knowledge in the entire world. This is not a matter of opinion, just the fact of decades of intense specialization and research in Taiwan compared to other countries. If we can help bring some of their new US operations to Ohio, that would make the state critically important to the entire domestic technology supply chain. Maybe this is the best-case outcome if the CHIPS Act is out the door.

I agree - as an example, Honda manufacturing in Ohio has certainly been very good for the state. 

4 hours ago, sonisharri said:

 

If Intel falls through and we somehow manage to get TSMC in Ohio, I can't say I would be mad. I support competition as much as anyone else, but TSMC literally has some of the most advanced computing knowledge in the entire world. This is not a matter of opinion, just the fact of decades of intense specialization and research in Taiwan compared to other countries. If we can help bring some of their new US operations to Ohio, that would make the state critically important to the entire domestic technology supply chain. Maybe this is the best-case outcome if the CHIPS Act is out the door.

I agree, want to see the best come here regardless. But many on this forum simply want it to fail, period. To me they’re some of the most asinine takes I’ve ever read. If you want such a boom to our collective economy to fail then just leave the area. 

Intel is building its Ohio One facility in advance of confirmed customer demand from the Fabless (Apple, Nvidia, hyperscalers, etc.). Intel calls this "shell ahead" approach and it is the less-understood corollary to Pat Gelsinger's bold plan for "5 nodes in 4 years" and regaining process leadership. With "shell ahead," Intel constructs just the building and makes it weathertight. It also installs core infrastructure like power, water, and climate control systems, and prepares the facility to receive manufacturing equipment and tooling for semiconductors. The most expensive elements, e.g. ASML's EUV machines, are only installed in the fab once customer orders materialize.

Shell ahead is risky and costly because the strategy involves building manufacturing facilities—or "shells"—before securing firm customer commitments. This contrasts with more traditional approaches where foundries typically expanded capacity only after signing contracts with customers. That de facto approach to fab construction is no longer viable with the average fab taking 918 days (2.5 years) in North America during decade between 2010 and 2020. Add in the size and complexity of today's leading-edge processes and that construction duration grows considerably longer (likely 4 to 5 years).

 

Intel is now de-risking its "shell ahead" approach by slowing down the timeline for Intel Ohio. The strategy seems paradoxical at first but, to me, makes more sense on further examination. For one, the slow down preserves Intel's capital by spreading the expense over more years. Intel's revenue (and profit) in its client computing segment has dropped precipitously since 2023. And two, since Ohio One is intended for that external demand, perhaps, Intel precipitate prepayment from these would-be customers who need another manufacturer than TSMC since their profit margins are being compressed.

Sounds similar to speculative building as seen in warehouse/light industrial but with more finishing.

A couple weeks ago I decided I needed another desktop computer since my current one is 9 years old, is starting to have problems and can't be upgraded to W11. I usually prefer to buy 3-4 year old refurbished computers since I am not a Power User. Usually I shop Micro Center's web site for a couple hours then go an pick one up at their B&M on Bethel. This time around the selection of that type of computer was slim pickins'. Most of the desktops were the mini size. I prefer standard ATX size and couldn't find one I liked even at their huge store. That was a first! But then I started thinking that if I'm looking at 2021 era computers yeah that's chip shortage time. So in some ways we are still feeling that lack of capacity.

The warehouse spec seems easy to understand, those are literal shells and they go up in a matter or a month or two. Intel though, we got news stories every week for an entire summer of those huge superloads that were being shipped in from all over the world, brought up the river to Cincinnati, then trucked for like a week up the factory. And they did that something like three dozen times.

It's hard to reconcile the idea that they would go through the much effort and ship that much material when there's a possibility of not even using the stuff. I'm sure it happens all the time, but man is it hard to wrap my brain around.

Saw Governor DeWine at the airport today. Chatted with him about Anduril/Intel. I don’t want to put words in his mouth but something along the lines of whether its Intel or not that runs it the plant, its vital and it is getting built. Basically said don’t overthink it. Its already in progress. Gave me some confidence. He said the Anduril stuff is a huge deal. Really open and easy to talk to. Could tell he was excited about the work JobsOhio is doing. I asked him if we had anything else big in the pipeline and he just smiled and said not that he could say. 
 

just a casual 5 minute convo. But i was glad he took a few minutes!

4 minutes ago, Jd1137 said:

Saw Governor DeWine at the airport today. Chatted with him about Anduril/Intel. I don’t want to put words in his mouth but something along the lines of whether its Intel or not that runs it the plant, its vital and it is getting built. Basically said don’t overthink it. Its already in progress. Gave me some confidence. He said the Anduril stuff is a huge deal. Really open and easy to talk to. Could tell he was excited about the work JobsOhio is doing. I asked him if we had anything else big in the pipeline and he just smiled and said not that he could say. 
 

just a casual 5 minute convo. But i was glad he took a few minutes!

If only he wasn't on his way to DC to attend the signing of the EO to dismantle the Department of Education...

9 minutes ago, PizzaScissors said:

If only he wasn't on his way to DC to attend the signing of the EO to dismantle the Department of Education...

I’m not getting into all that haha. I just wanted to pick his brain about Intel/Anduril. Asked him about jobsohio attracting international flights to Europe from CMH. But that doesn’t belong in this thread i don’t wanna get too off topic.

3 minutes ago, Jd1137 said:

I’m not getting into all that haha. I just wanted to pick his brain about Intel/Anduril. Asked him about jobsohio attracting international flights to Europe from CMH. But that doesn’t belong in this thread i don’t wanna get too off topic.

The dude is a spineless worm, I wouldn’t believe anything he says. His confidence is a joke because he is actively supporting decisions that will harm the state and future workers for these projects. 
 

4 minutes ago, VintageLife said:

The dude is a spineless worm, I wouldn’t believe anything he says. His confidence is a joke because he is actively supporting decisions that will harm the state and future workers for these projects. 
 

 

I'm not a big fan of the guy, but I think the most logical outcome is exactly what he supposedly said. Building our own microchips is a significant national security issue. The plant will get done. Intel is simply a disaster and likely won't end up being the company operating it. But there are other companies that can and, given the amount already invested in constructing the site, will be eager to take over if Intel totally falls apart. 

 

A nice little drone video showing recent progress at Intel...

 

Giant Cranes SPRING Into Action

 

Video from Lukateake 3/24/25

 

Analyst: New Intel CEO to prioritize chip design, foundry capabilities

 

Intel Corp. might shift its focus to emphasizing chip design and foundry capabilities as it looks to secure Nvidia and Broadcom as clients, according to a UBS analyst.

 

In a note this week to investors, UBS analyst Timothy Arcuri wrote that Intel’s near-term plan under the leadership of newly appointed CEO Lip-Bu Tan likely will consist of an attempt to get Nvidia or Broadcom “over the finish line” with a foundry commitment.

 

Intel’s core strategy also will call for further development of its 18A technology while introducing a lower-power version of the process – 18AP – to the market, offering a more attractive alternative to prospective customers, Arcuri wrote.

 

“Nvidia is more likely than Broadcom to become an Intel foundry customer,” Arcuri wrote in the investor note. “Jensen Huang could consider adopting Intel’s 18A process for gaming products; however, power consumption remains an unresolved issue.”

 

More below:

https://www.bizjournals.com/columbus/news/2025/03/26/intel-ceo-chip-design-foundry-capabilities.html

4 hours ago, ColDayMan said:

Analyst: New Intel CEO to prioritize chip design, foundry capabilities

 

Intel Corp. might shift its focus to emphasizing chip design and foundry capabilities as it looks to secure Nvidia and Broadcom as clients, according to a UBS analyst.

 

In a note this week to investors, UBS analyst Timothy Arcuri wrote that Intel’s near-term plan under the leadership of newly appointed CEO Lip-Bu Tan likely will consist of an attempt to get Nvidia or Broadcom “over the finish line” with a foundry commitment.

 

Intel’s core strategy also will call for further development of its 18A technology while introducing a lower-power version of the process – 18AP – to the market, offering a more attractive alternative to prospective customers, Arcuri wrote.

 

“Nvidia is more likely than Broadcom to become an Intel foundry customer,” Arcuri wrote in the investor note. “Jensen Huang could consider adopting Intel’s 18A process for gaming products; however, power consumption remains an unresolved issue.”

 

More below:

https://www.bizjournals.com/columbus/news/2025/03/26/intel-ceo-chip-design-foundry-capabilities.html

Nvidia is not leaving TSMC they and Apple have priority over everyone else there

https://www.cleveland.com/news/2025/03/ohio-ag-dave-yost-state-has-little-power-to-claw-back-600m-from-intel.html

 

Incredible 

Intel, TSMC tentatively agree to form chipmaking joint venture, The Information reports

 

Intel and Taiwan Semiconductor Manufacturing company TSMC have reached a preliminary agreement to form a joint venture to operate the U.S. chipmaker's factories, The Information reported on Thursday, citing two people involved in the discussions.

 

TSMC, the world's largest contract chipmaker, will take a 20% stake in the new company, the report said.

 

https://www.reuters.com/technology/intel-tsmc-tentatively-agree-form-chipmaking-joint-venture-information-reports-2025-04-03/

 

 

 

 

Edited April 4Apr 4 by Luvcbus

1 hour ago, Luvcbus said:

Intel, TSMC tentatively agree to form chipmaking joint venture, The Information reports

 

Intel and Taiwan Semiconductor Manufacturing company TSMC have reached a preliminary agreement to form a joint venture to operate the U.S. chipmaker's factories, The Information reported on Thursday, citing two people involved in the discussions.

 

TSMC, the world's largest contract chipmaker, will take a 20% stake in the new company, the report said.

 

https://www.reuters.com/technology/intel-tsmc-tentatively-agree-form-chipmaking-joint-venture-information-reports-2025-04-03/

 

 

 

 

Everyday my crystal ball abilities become stronger and stronger...

Excited my next Mac or iPhone could very well have a locally-sourced CPU.

Edited April 5Apr 5 by mrCharlie

Good to be back in the air again with some gorgeous light today. Enjoy!

Happy Mother's Day to all the moms out there!

Please let me know in the comments what changes you see in this most-recent video from Friday afternoon.

How Did They Build This GIANT Fab So Fast? | Intel Ohio One

Memorial Day weekend flight over Intel Ohio.