[News] Intel’s Ohio Plant Dilemma: Build at High Cost — or Pay Back Billions in Government Aid

As part of its global cost-cutting drive, Intel is pulling back on new fab plans in Germany and Poland —and its long-delayed Ohio project has now been pushed beyond 2030-31, with no clear timeline in sight. So, what’s next for the Ohio site? According to The Columbus Dispatch and NBC4i, Intel now faces a tough dilemma: walking away from the project could end up being expensive too.

As per NBC4i, at the earnings call last week, Intel said it must secure external customers for its next-gen 14A node — or risk halting all work at its massive Ohio site. While the 14A node isn’t expected to launch until 2027, this could give Intel some time to find the partners it needs, the report adds.

In the worst case, Intel might have to give up advanced node manufacturing if 14A fails and outsource its chip designs to foundries like TSMC. But abandoning the $28 billion Ohio plant could come at a steep cost.

Ohio Fab Delayed, Billions at Stake

Though no new timeline has been announced, The Columbus Dispatch reports Intel will continue key construction work—pouring concrete, steel framing, and groundwork—for its Ohio fabs. The company plans to invest over $1 billion in the project in 2025 alone, as noted by the report.

If the project stalls, NBC4i warns Intel could face billions in repayment obligations—refunding government incentives from both Ohio and the federal level tied to the project.

According to The Columbus Dispatch, Intel was awarded $7.865 billion under CHIPS Act, with at least $1.5 billion earmarked for the Ohio plant. The state also pledged $300 million per fab in grants — but only if construction is completed by the end of 2028, the report notes.

It is also worth noting that Intel is required to update state officials with a status report each year, but the next one won’t arrive until March 2026, as per the report.

Intel had originally planned to open its first Ohio factory in 2025. However, the timeline has already been pushed back by at least five to six years, with the new expected opening around 2030 or 2031. The second Ohio factory is slated for completion in 2031, with operations beginning in 2032. The overall timetable, as CEO Lip-Bu Tan hinted at the earnings call last week, could be further delayed.

CHIPS Act Funding Pending

It is also worth noting, as reported by NBC4i, that Intel has yet to receive the full funding promised under the CHIPS Act. To date, the company has received $2.2 billion—all of which was disbursed prior to President Trump taking office, as noted by the report. Between April and July, Intel submitted reimbursement claims totaling $850 million, but has not received any additional payments, the report adds.

On the other hand, The Columbus Dispatch notes that to prepare for its $28 billion mega-fab, Intel has already begun hiring and training Ohio workers at its existing sites in Arizona, New Mexico, and Oregon.

Read more

• [News] Intel Earnings Call Bombshell: Could Exit Advanced Nodes if 14A Fails, Eyes TSMC Outsourcing Beyond 18A

(Photo credit: Intel)