Proactive Investors - Intel Corp (NASDAQ:INTC shares sunk Friday morning after reports suggested the chipmaker is adjusting the construction timeline for its $20 billion chipmaking project in Ohio.
The delay is due to market challenges and a slow disbursement of US grant money, as reported by the Wall Street Journal.
Intel’s initial plan envisioned chip production starting next year, but construction on the manufacturing facilities is now anticipated to conclude by late 2026, sources involved in the project revealed.
The company affirmed its commitment to the project, citing progress over the past year, while acknowledging that managing large-scale projects involves altering timelines.
The delay is attributed to uncertain demand for traditional server and personal computer chips, impacting Q1 revenue forecasts.
But some analysts downplayed concerns, emphasizing that Intel's broader capital spending is not expected to see significant cuts.
Shares of Intel were down 3.4% on Friday morning in New York.