INTEL, the beleaguered American semiconductor manufacturer, has postponed the completion of its two new fabrication plants in Ohio, a $28bn (approximately RM132b) project, citing a “prudent approach” to its investment. The company now anticipates chip production to begin in 2030, a five-year delay from the initially projected 2025 start date.
In a statement released on Friday, Intel attributed the delay to the need to synchronise production with prevailing market demand. Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, informed employees that the firm would “continue construction at a slower pace, while maintaining the flexibility to accelerate work and the start of operations if customer demand warrants.”
This decision comes as Intel grapples with significant financial losses and heightened competition. The company reported a net loss of $18.8bn (approximately RM89bn) for the full year 2024, highlighting its ongoing struggles to establish a firm foothold in the rapidly evolving artificial intelligence sector.
Once a dominant force in Silicon Valley, Intel has witnessed its market share diminish in the face of competition from Asian rivals such as TSMC and Samsung, which dominate the custom semiconductor manufacturing market. The company was also caught off guard by the rapid ascent of Nvidia, now the leading supplier of AI chips.
The company’s difficulties culminated in the departure of chief executive Pat Gelsinger in December, following a loss of confidence from the board. His exit occurred shortly after Intel announced a sweeping cost-cutting initiative, which included the elimination of over 15,000 jobs and the postponement or delay of several chip manufacturing projects.
Despite receiving a $7.9bn (approximately RM37.3bn) award from the Biden administration to bolster domestic semiconductor production, Intel has also encountered setbacks in Europe. Late last year, the company announced delays to its plans for large-scale chip manufacturing facilities in Germany and Poland, citing lower-than-anticipated demand. Intel also stated it would scale back projects in Malaysia.
-BTS Media
