Intel slows $28 bn chip factory project in Ohio

Core Points - Intel has delayed the start of production at its new chip-making plants in Ohio to 2030, five years later than initially planned, as part of a $28 billion project [1][2] - The company is adopting a cautious approach to align production with market demand, as stated by Intel Foundry Manufacturing general manager Naga Chandrasekaran [2] - Intel reported a net loss of $18.8 billion for the full year 2024, indicating ongoing struggles in the competitive semiconductor market [3][4] Company Challenges - Intel's market position has been challenged by Asian competitors like TSMC and Samsung, which dominate the semiconductor industry [4] - The emergence of Nvidia as a leading AI chip provider has further complicated Intel's efforts to regain its competitive edge [4] - The departure of CEO Pat Gelsinger followed a loss of confidence from the board regarding the company's turnaround plans [4][5] Strategic Adjustments - The company has announced job cuts exceeding 15,000 as part of a cost reduction strategy and has paused or delayed construction on several facilities [5] - Intel has also postponed plans for two mega chip-making factories in Germany and Poland due to lower-than-expected demand [6] - The company is maintaining flexibility in construction pace, allowing for acceleration if customer demand increases [3]