Intel's new timeline conflicts with promised deadline
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Illustration: Shoshana Gordon/Axios
After another round of delays, Intel's Licking County project timeline now appears to be at odds with promises the company made to the state of Ohio.
Why it matters: Intel has already received hundreds of millions of dollars from the state for the construction of its planned $20 billion semiconductor factory.
- If Intel's new projections are accurate, Ohio can decide whether to claw back funds or amend the agreement.
Follow the money: In 2023, Ohio agreed to a $600 million onshoring grant funding the construction of two chip factories. The state disbursed the money three months later, setting a project deadline of Dec. 31, 2028.
- Ohio also committed to a $300 million water reclamation grant, a $475 million Job Creation Tax Credit and about $300 million in road and infrastructure work.
- New Albany is also spending $180 million on infrastructure for Intel, and the federal CHIPS Act provided $7.86 billion for various Intel projects, $2.2 billion of which has already been distributed.
State of play: Despite that 2028 deadline, Intel's latest timeline announcement explicitly says it plans to complete its production facilities, or "fabs," in 2030 and 2031, respectively.
- The company cited a need to "align the start of production of our fabs with the needs of our business and broader market demand."
Between the lines: Department of Development spokesperson Mason Waldvogel confirms to Axios that Intel has received the full $600 million for construction, but has not yet received water reclamation and tax credit funds.
What they're saying: Neither Intel nor state officials have an explanation for the timeline discrepancy.
- Waldvogel says Intel has not requested to amend its agreement and has until a year before the required deadline to do so.
- "While Intel has indicated a later completion date, construction timelines are estimates and can be moved up."
Intel spokesperson Eleonora Akopyan declined to answer Axios' questions about the timeline.
- Instead, she pointed to language in the announcement that says Intel is "maintaining the flexibility to accelerate work and the start of operations if customer demand warrants."
A bird's-eye view of progress
Amid project delays and company uncertainty, work is still ongoing at the Ohio One site.
Driving the news: Intel released new drone footage showcasing the massive scope of construction, which is reshaping not just New Albany, but the whole region.
By the numbers: Intel says crews have already worked more than 6.4 million hours on the project.
- Waldvogel tells Axios that Ohioans from 83 counties and 430 Ohio companies have worked on the project.
As a whole, Intel promised to create 7,000 construction jobs in addition to 3,000 permanent full-time jobs, and $405 million in annual payroll.