Intel has announced a significant delay in its planned$28 billion semiconductor manufacturing project in Ohio, pushing the completion of its first factory to 2030.

Operations are expected to begin between 2030 and 2031, extending the initial timeline by at least five years. The second factory is now scheduled for completion in 2031, with production starting in 2032.

The chipmaker is adjusting its plans in response to financial pressures following its costly push into contract chip manufacturing.

Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, stated that the decision was made to align factory operations with market demand and ensure responsible capital management.

The company has also been cutting costs through workforce reductions, dividend suspensions, and a broader expense reduction strategy.

Intel's financial restructuring follows a challenging period for the company, which has struggled to regain its position in the semiconductor industry.

The delay in Ohio's factory construction reflects a cautious approach to investment, with the company aiming to keep operating expenses at approximately$17.5 billion for 2025.