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April 22, 2024

Intel’s $20B Ohio plant delayed

Intel’s $20B Ohio plant delayed

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Dive Brief:

  • Semiconductor manufacturer Intel has delayed the construction timeline for its $20 billion Licking County manufacturing facility until 2026 or 2027, according to a company statement shared with Construction Dive.
  • The chipmaker originally intended to complete the facility in 2025, but pushed back its production goal due to business conditions and demand environment, the firm said.
  • Lingering high interest rates, labor shortages and regulatory delays continue to hamper construction activity, according to construction trade organizations. That includes megaprojects like Intel’s $20 billion plant, the largest single private-sector investment in Ohio’s history.

Dive Insight:

Private sector construction projects continue to face a number of hurdles, according to the latest construction spending report.

Although demand appears to be strong for the overall construction industry, a persistent shortage of skilled workers, lagging federal investments and tighter financing conditions may limit growth, especially on private construction projects, according to the Associated General Contractors of America. Intel said its facility depends on the demand environment and overall business conditions. 

Nevertheless, Intel affirmed its commitment to the project and confirmed construction will continue despite the delay to the completion timeline. The company pointed out conventional construction timelines for semiconductor manufacturing facilities range from three to five years from groundbreaking, meaning the new timeline now aligns with industry norms. Furthermore, Intel highlighted its successful completion of the first phase of construction in its statement.

The project commenced in September 2022. Since the groundbreaking, contractors at the site have:

  • Poured over 32,000 cubic yards of concrete.
  • Installed about 15,000 linear feet of underground pipe.
  • Laid more than 210,000 linear feet of underground conduit.

Numerous general contractors have won work on the project, including Gilbane Building Co., Bechtel, McDaniel’s Construction, Northstar Contracting and GTSA Construction Consulting.

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