Intel (INTC.US) confirmed plans to build a factory in Ohio after pressure from US senators

The Zhitong Finance App learned that Intel (INTC.US) confirmed that it is still planning to build a multi-billion dollar factory in Ohio. Earlier, US Republican Senator Bernie Moreno from Ohio sent a letter to Intel CEO Chen Liwu last week asking him to provide an update on the extension of the project.

According to reports, an Intel spokesperson said, “We continue to work closely with local stakeholders, the Ohio congressional delegation, and the Ohio government to meet the state's needs and advance Intel's priorities.” The project, known as “Ohio One,” “continues to be an important part of our long-term plans to expand cutting-edge manufacturing in the US.”

Moreno expressed concern that it would take too long to start construction on the project and indicated that the company received several incentives from the government.

Moreno wrote, “State and local officials are doing everything they can to help your company meet its stated 2025 opening schedule. Ohio has provided your company with public incentives worth $2 billion and spent at least $691 million to build significant new public infrastructure. However, Intel announced 30% layoffs in 2024, once again delayed the project, and the first factory won't open until 2030 at the earliest — five years later than when it was first publicly announced to open in 2025.”

He also mentioned the power generation capacity reserved for Intel, which can be used by other interested entities, including Meta Platforms (META.US).

He added, “Additionally, I'm asking your company to stop continuing to pass on additional infrastructure costs to Ohio taxpayers due to a failure to effectively utilize excess electricity. As you know, Meta has asked your company to temporarily reallocate approximately 200 megawatts of electricity to its use. Given the ongoing delays in the project, to protect the interests of hardworking taxpayers in Ohio, it would be best to reallocate surplus unused electricity from Intel to entities interested in using that power, such as Meta, to offset any infrastructure costs.”

Intel has recently attracted significant investment from both the public and private sectors. The company revealed late Monday that it had issued and sold 86.95 million shares to SoftBank at a price of $23 each. In August of this year, Intel received an investment of $11.1 billion from the US government, but the company warned that this investment could damage its business in other countries. Earlier this month, Intel and Nvidia (NVDA.US) signed an agreement to jointly develop PC and data center chips. Meanwhile, Nvidia said it would invest $5 billion in Intel.