By Carrie Ghose – Staff reporter, Columbus Business First
Jan 30, 2023
Even though Intel Corp. is slashing some $3 billion in 2023 expenses amid declining sales and projections of continued financial losses, construction continues at its $20 billion semiconductor manufacturing complex in New Albany.
The California chipmaker is "committed to innovating and investing in Ohio," the company told Columbus Business First.
"Intel has historically invested during downturns," spokeswoman Linda Qian said via email. "We are building for the future."
Intel (Nasdaq: INTC) last week reported both fourth-quarter and year-end sales well below its projections as well as a deeper-than-expected fourth quarter loss.
The company has been cutting jobs and other expenses, such as cancelling a planned $700 million data-center research lab in Oregon, Portland Inno reported.
At the same time, Intel reiterated its commitment to manufacturing, saying it's going ahead with semiconductor fabrication, or fabs, in Germany, Italy – and Ohio.
Investing in a resilient and diverse supply chain for chips is "foundational" to the company's strategy, Qian said. That was made clear by chip shortages caused by supply chain disruption in the pandemic.
Fabs take up to four years to build. The first phase in New Albany is expected to open in three years, creating more than 3,000 jobs.
"When we decided to build new fabs in Ohio, we knew we would be in it for the long haul," Jim Evers, general manager of the Ohio One site in New Albany, said in an online column last week celebrating the one-year anniversary of announcing the project.
CEO Pat Gelsinger told Wall Street analysts on Thursday that despite the cost-cutting and market challenges, his long-term manufacturing-based investment plan – leaning on government subsidies – would stay on course.
"I want to remind everyone that we are on a multi-year journey," he said.
Intel announced the name "Ohio One" for the New Albany campus last week, and released new renderings.
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