Intel could 'pause' or 'discontinue' construction at its Ohio One facility in Licking County, the company said in its 10-Q SEC filings,
Intel could "pause" or "discontinue" construction at its Ohio One facility in Licking County, the company said in itsin its second quarter earnings report that it would be "slowing the pace of construction" at its $28 billion semiconductor facility dubbed Ohio One.
According to the company's SEC filings, the possible pause is based on its continued development of technology known as 14A. In the filings, Intel said it is focused on the continued development of Intel 14A, which is set to debut in 2027, and securing a significant external customer for such node. "However, if we are unable to secure a significant external customer and meet important customer milestones for Intel 14A, we face the prospect that it will not be economical to develop and manufacture Intel 14A and successor leading-edge nodes on a go-forward basis," the SEC filings stated. "In such event, we may pause or discontinue our pursuit of Intel 14A and successor nodes and various of our manufacturing expansion projects. We have been unsuccessful to date in securing any significant external foundry customers for any of our nodes and our prospects for securing a significant external foundry customer for Intel 14A are uncertain." Intel said if they were to pause or discontinue the design, development, and manufacturing of Intel 14A and other next generation leading-edge nodes, the company would be subject to a number of significant strategic business, financial and operational al risks and repercussions including possibly having to "discontinue the new leading-edge fabrication facilities we are building in Ohio. We also would expect to incur additional costs and expenses as we wind down other projects and facilities and reduce headcount." Licking County Commissioner Tim Bibb said his constituents have expressed disappointment and frustration by the continued delays at the Intel site. "Intel changed our world here in Licking County," Bubb said. "It's changed property values, it's changed the demand on education, on workforce housing, water and sewer requirements out there. So much has changed and so much of it has caused stress and frustration trying to respond Intel and we got to do this quick because they are coming. And now it's off a sudden, they aren't coming, at least at the moment." Bubb said he is, however, hopeful that if Intel doesn't move forward, another company will take over the site. "I guess all we can do is cross our fingers and hope that at some point another partner or merger will work together to use the facilities that are under construction out there." Following the release of the company's second-quarter earnings report on July 24, an Intel spokesperson told ABC6 that the projected timeline for completion of the first fab is 2030-2031, and that work is still actively happening at the Ohio One site. "Intel is committed to advancing U.S. technology and manufacturing leadership, and Ohio One remains an important part of our long-term plans to expand leading-edge manufacturing on U.S. soil," the company said. "Today's announcements are all about putting our foundry business on a more financially sustainable path going forward. Based on the progress we have made in Ohio, we continue to have flexibility to accelerate work based on customer demand.” Gov. Mike DeWine also issued a statement following the release of Intel's latest earnings report last week. "While the pace of construction in Ohio may not be as fast, Intel has affirmed its commitment to Ohio as the new leadership of the company makes adjustments to its long-term strategy," DeWine said.
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