Unfavorable market conditions and delays in the allocation of government funding have led to a postponement of the expected completion date for Intel's $20 billion project, which involves building semiconductor manufacturing plants in the US state of Ohio , as reported by the Wall Street Journal. Intel had announced plans to open two facilities in January 2022, starting work on the sites nine months later, with the initial expectation that construction of the plants would begin in 2025. However, it is now rumored that the start of production has been pushed back to end of 2026.
At the time of the project's announcement, Intel CEO Pat Gelsinger said that investment in the United States would “help meet the unprecedented demand for chips.” The initiative was also presented as supporting the country's cause in competing with China's fast-growing semiconductor industry. In a statement to the WSJ, Intel noted that significant progress has been made on the project. The company previously said the scale and pace of the project is “heavily dependent on funding from the US CHIPS and Science Act,” a government program to support the country's scientific and technological development. Last week, Reuters reported that some grants under the program will likely be awarded before the presidential address in early March. The legislation received approval from US President Joe Biden in August 2022.
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