Intel delays $20 billion Ohio project, citing slow chip market - WSJ
Reuters
Published Feb 01, 2024 05:51PM ET
Updated Feb 01, 2024 07:21PM ET
(Reuters) -Intel 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 (NASDAQ:INTC) 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 (NASDAQ:NVDA) and aspiring AI competitor Advanced Micro Devices (NASDAQ:AMD), sapped demand for traditional server chips - Intel's core data center offering.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.