News Intel's Ohio fabs could reportedly slip to late 2026 — 'Silicon Heartland' factories were originally planned for 2025

[Admin]

Intel reportedly delays $20 billion Ohio fab project due to govt incentives and chip demand.

Intel's Ohio fabs could reportedly slip to late 2026 — 'Silicon Heartland' factories were originally planned for 2025 : Read more

 

[slgreg]

Intel has around 25 Billion cash on hand....and they are going to delay building because Government money is slow in coming??? Seems short sighted.

 

[samopa]

Why they did not align the building to the top/left road ?

 

[edzieba]

Intel has around 25 Billion cash on hand....and they are going to delay building because Government money is slow in coming??? Seems short sighted.

Building a leading-edge wafer fab on a greenfield site is on the order of s $15-$20 Billion investment before even starting operations (there's the fab itself, the stupendously expensive wafer scanning equipment, the AC and chemical plants to run the fab, the power generation and power grid infrastructure to power the fab, the chemical industry needed to produce the ship the support chemistry, etc. etc.). If Intel do not think that investing their own money in a new US-based fab is worth it vs. investment elsewhere (e.g. Taiwan or in the same region to take advantage of local support industries) or not investing at all if not necessary at their projected rates of demand and growth, then they may not be willing to bet their own money, since their own motivations are to be profitable. Building an 'unneeded' fab means spending the majority of their free cash to... reduce margins and end up with a bunch of unsold product.
The US government on the other hand has an entirely different goal - to onshore chip production capability as a hedge against loss of access to Taiwan region production, regardless of profitability. Thus, the USG are willing to front cash to offset the investment risk of building unneeded/unprofitable fabs and infrastructure, because profitability is not the motivating factor.

 

[dalek1234]

"market issues and delays in U.S. government funding"

I wonder what the Market Issues are exactly