Intel's ambitious $20 billion chip manufacturing operation in Ohio is undergoing changes to its construction schedule, the Wall Street Journal reported Thursday.

The delay is believed to be due to prevailing challenges in the market and delays in expected US government financial support aimed at strengthening the domestic semiconductor industry. according to To WSJ. Originally scheduled to begin chip production in 2025, it is now expected to be completed by the end of 2026, sources close to the development provided this latest timeline.

This adjustment reflects the dynamic nature of large-scale project management within the semiconductor sector, where market trends and economic factors have a significant impact on operating schedules.

“Managing large projects, especially in our industry, often requires adapting to changing timelines,” an Intel spokesperson said, according to WSJ. “Our decisions are based on business conditions, market trends and being responsible stewards of capital.”(Related: Republican senators block Biden EPA nominee over energy project delays)

Intel is delaying construction schedule for $20 billion chip manufacturing project in Ohio amid market challenges and slow rollout of U.S. government subsidies to grow domestic industry https://t.co/0qQwSCvSfZ https://t.co/0qQwSCvSfZ

— Wall Street Journal (@WSJ) February 2, 2024

The Ohio project is being hailed as a major step toward boosting domestic chip manufacturing capacity. According to the report, it has attracted attention for its potential to inject vitality into the local economy and strengthen national security by reducing dependence on overseas production.

The site, located northeast of Columbus, currently employs approximately 800 workers and is expected to grow its workforce to several thousand by the end of the year, contributing to the creation of approximately 7,000 construction jobs. ing.

Intel's vision for the Ohio complex extends to a potential $100 billion investment, making it one of the most substantial efforts to support the administration's efforts to revitalize the domestic semiconductor industry, the Journal said. It pointed out. The effort is consistent with the broader objectives of his CHIPS Act, which allocates her $53 billion in incentives to the industry, but the large grants have yet to be distributed. Intel's project delays mirror similar postponements by other industry giants, including Taiwan Semiconductor Manufacturing.