Potential Intel partnership could speed construction at delayed Ohio semiconductor project

A potential partnership between Intel and another semiconductor manufacturer could accelerate construction of the company’s delayed $28 billion Ohio chip manufacturing campus, according to U.S. Sen. Jon Husted, who said Intel recently informed him it is working with a prospective partner interested in the New Albany site.

Husted said the arrangement, if finalized, could help increase customer demand for Intel’s Ohio fabrication plants and speed construction after years of delays tied in part to uncertainty over future chip orders.

“Intel reached out to inform me that they have a potential partner that is going to work with them,” Husted told The Columbus Dispatch. “And if the deal comes through it could hasten the build-out of these fabs and could also create the demand for additional fabs.”

Husted added that the development would be positive for Ohio’s economy and manufacturing sector.

“This is good news for job creation and investment in central Ohio,” he said.

The potential partnership follows Intel’s announcement earlier this year that it reached a preliminary agreement to manufacture chips for Apple, one of the world’s largest semiconductor customers. That agreement marked an important step toward securing outside customers for the Ohio One campus after years of questions about who would purchase chips produced at the site.

According to multiple reports, Intel is considering a partnership with South Korean semiconductor manufacturer SK Hynix that would allow the company to use part of the New Albany campus to manufacture memory chips for its own customers.

Reports suggesting SK Hynix planned to purchase the Ohio campus outright were quickly denied. SK Hynix said it has neither pursued nor decided to acquire Intel’s Ohio facilities.

Intel has not confirmed the identity of a potential partner or disclosed details of any possible agreement.

“As a matter of policy, we will not comment on speculation in the media about future business arrangements,” an Intel spokesperson said in a statement. “However, Intel is committed to Ohio, and we continue with our investments to accelerate the site readiness.”

The project, known as Ohio One, has experienced repeated delays since Intel announced the investment in 2022. The company originally expected production to begin in 2025 but later pushed the timeline into the next decade as it adjusted construction plans to match customer demand.

Intel now expects construction on the first fabrication plant to be completed in 2030, with manufacturing operations beginning in 2031. The second plant is expected to be completed in 2031 and begin operating in 2032.

Ohio.News previously reported that Intel has spent approximately $5.26 billion on construction at the New Albany campus. The project has received $600 million in state grants and $1.5 billion in federal funding earmarked for the Ohio site as part of a broader $7.865 billion CHIPS Act award.

The delays have drawn criticism from some elected officials who questioned whether the company would deliver the jobs and economic development promised after receiving significant taxpayer support. Intel has consistently said it is pacing construction to customer demand, and Husted said a new manufacturing partner could help address that challenge.

“You can’t build something until you have demand,” Husted said. “There’s a need for fabrication space in America and Intel has the shell in place to provide it.”

He added that the existing infrastructure positions the project to move more quickly if additional customers are secured.

“The site is ready to go. You want to use the productivity that you have,” Husted said, adding that a partnership could hasten construction of the fabrication plants “sooner rather than later.”

Intel has not announced whether formal negotiations are underway, and the company has not identified when a potential agreement could be completed.