Intel has postponed the completion of two new fabrication plants in Ohio to 2030, citing a need to align production with market demands. The company reported a net loss of US$18.8 billion in 2024 and faces intensified competition from Asian semiconductor firms. CEO Pat Gelsinger’s dismissal and various project delays highlight the challenges Intel is currently navigating.
Struggling US chip manufacturer Intel has announced a delay in the completion of its two new fabrication plants in Ohio, with production now scheduled to commence in 2030, rather than the previously anticipated date of 2025, as part of its US$28 billion project. The company stated that this decision reflects a cautious approach in response to current business conditions and market demands.
Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, communicated to employees that aligning production with market needs is essential. He emphasized that while construction will continue at a slower rate, Intel remains flexible to expedite operations should customer demand increase.
Intel reported a net loss of US$18.8 billion for the full year 2024, amid challenges in asserting its position within the rapidly evolving artificial intelligence sector. The company finds itself overshadowed by leading Asian semiconductor manufacturers such as TSMC and Samsung, which excel in customized semiconductor production.
The emergence of Nvidia as a leading AI chip provider further complicated Intel’s competitive standing. The company also experienced leadership changes when CEO Pat Gelsinger was dismissed in December due to a lack of confidence in his turnaround strategies. This departure coincided with significant job cuts and project postponements at various chipmaking facilities.
Additionally, the Biden administration had awarded Intel US$7.9 billion in support to enhance domestic semiconductor production. However, Intel later announced delays in plans to establish two major factories in Germany and Poland due to lower than expected demand, as well as cutbacks on projects in Malaysia.
Intel’s decision to postpone the opening of its new fabrication plants reflects its cautious stance amidst significant financial losses and shifting market demands. The legacy chipmaker is facing intense competition while striving to adapt to the evolving semiconductor landscape. With leadership changes and project delays, Intel’s future direction remains uncertain as it seeks to regain its footing in the industry.
Original Source: www.malaymail.com
