By Reuters | Updated: February 2, 2024
Feb 1 (Reuters) – Intel (INTC.O), opens new tab is delaying the construction timeline for its $20 billion chipmaking project in Ohio amid market challenges and the slow rollout of U.S. grant money, the Wall Street Journal reported on Thursday.
Its initial timeline had chip-making starting next year. Construction on the manufacturing facilities now is not expected to be finished until late 2026, the report said, citing people involved in the project.
Shares of the chipmaker were last down 1.5% in extended trading.
“We are fully committed to completing the project, and construction is continuing. We have made a lot of progress in the last year,” an Intel spokesperson said, adding that managing large-scale projects often involves changing timelines.
Uncertain demand for its chips used in the traditional server and personal computer markets had led the company to forecast revenue for the first quarter below market estimates late last month.
This came as a shift in spending to AI data servers, dominated by rivals Nvidia (NVDA.O), opens new tab and aspiring AI competitor Advanced Micro Devices (AMD.O), opens new tab, sapped demand for traditional server chips – Intel’s core data center offering.
© Thomson Reuters 2024
