Tech company delays $28 billion factory in Central Ohio, lays off 15% of employees after facing $2.9 billion loss

Photo via The City of New Albany, courtesy of Intel

When a billion dollar tech company set their sights on New Albany for their new $28 billion semiconductor fabrication factory, promises of thousands of new jobs were made.

But now, Intel announced that after losing $2.9 billion in their second-quarter, the chipmaker is delaying its construction plans. Not only that, but according to a memo by CEO Lip-Bu Tan, the company said they’ll be laying off 15% of employees to cut costs.

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This is now the second time Intel has delayed construction, the first being in February of this year. The chip fabrication was originally set to open by 2025, then it was announced an expected opening by 2028, and now it’s planned for 2030 or 2031.

In 2022, the chipmaker signed a $2.1 billion deal with Ohio, and so far the company has received $2.2 billion from federal grants. Intel was also awarded $7.9 billion from the Chips and Science Act, which is paid out in increments as it completes contractions in Ohio and three other states.

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