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"As of the end of 2024, Intel spent $3.7 billion and has signed contracts for another $3.2 billion in work meaning the company is already on the hook for roughly $6.9 billion, according to a progress report filed with the Ohio Department of Development last week. The report, which is part of the Megaproject Tax Credit Agreement that Intel has with Ohio, is filed annually.
"As of Dec. 31, Intel's Ohio operation had 163 employees, including 156 who live in Ohio and 7 employees who don't live in the state, the report showed. Intel has said it will hire around 3,000 employees for its first two fabs, once they become operational.""
Intel is facing several daunting tasks in 2025. Financial health is one of the big problems.
This Ohio project should not have started to begin with. If production will only start around 2030-2031, Intel really doesn't need to begin construction until 2027. But now $6.9 billion has been spent or will be spent on this Ohio site. Intel investors won't see any revenue impact from this Ohio project for at least eight long years. It's not good project planning and not sensible financial management.
Intel is facing several daunting tasks in 2025. Financial health is one of the big problems.
This Ohio project should not have started to begin with. If production will only start around 2030-2031, Intel really doesn't need to begin construction until 2027. But now $6.9 billion has been spent or will be spent on this Ohio site. Intel investors won't see any revenue impact from this Ohio project for at least eight long years. It's not good project planning and not sensible financial management.
Intel broke ground on its Ohio fab project in September 2022. If it does go into high volume production around 2030-2031 as described in Intel's latest updates, it will take eight years or more for anyone to see revenue coming from this Ohio fab.
If we consider that Intel was allocated $7.86 billion in federal grants through the Chips Act and has received $2.2 billion so far, this $6.9 billion spending at the Intel Ohio site for the 2030 high volume production date doesn't seem to be a well-thought-out action.
