This story has been corrected to say that President Biden, not Trump, called the Intel project in Ohio a “field of dreams” in 2022.
During Intel’s hourlong third-quarter earnings call with investors on Oct. 23, there was no mention of stalled production of a chip manufacturing operation in New Albany or even a passing reference to Ohio.
Intel Corp. CEO Lip-Bu Tan did say, “We are fully committed to advancing the Trump administration’s vision to restoring semiconductor production and thoroughly welcome the United States government as an essential partner in our efforts.”
But most of the earnings call dealt with esoteric topics about stability, financial metrics and better-than-expected earnings that helped propel the company’s stock price to an 18-month high.
On Sept. 18, the company announced a $5 billion investment from rival chipmaker Nvidia that would help both companies respond to growing demand for high-end microprocessors used to build data centers to help meet the demand for artificial intelligence.
During a conference call on that announcement, neither Tan nor Nvidia CEO Jensen Huang mentioned Ohio.
Intel is in the midst of a $28 billion project to construct two microchip production facilities in the Licking County portion of New Albany. The project kicked off in 2022, with President Biden mentioning Columbus in his State of the Union address and calling the Intel project a “field of dreams” and a model for American manufacturing. But the project has been hit with delays as the company faced numerous financial challenges.
Part of Intel’s announcement to delay completion of the project from 2026 to 2031 had to do with the inability to find major customers for the chips that power cars, computers and a host of industrial and commercial uses.
During the Oct. 23 conference call, Intel officials fielded questions about demand for X86 processors used in personal computers and the more advanced Graphics Processing Unit manufactured by Nvidia and sought for artificial intelligence. And there was discussion about new customer demand.
“On the one hand, there appears to be some positive signs at Intel, but it’s hard to say what that will mean for Ohio,” said Zach Schiller, research director for Policy Matters Ohio, a Cleveland-based nonprofit research institute. “(The project has) been pushed out so far … it’s clear they thought it would not get done within four years.
Schiller said he partially blames state officials for not pushing back for answers.
“I think there ought to be a stronger position by DeWine and the state of Ohio because it’s clear the company will be in violation of its contract and the $600 million the state has given them,” Schiller said.
“Why are we just sitting around and waiting for time to pass. That’s just irresponsible by the DeWine administration, especially when Intel is profitable,” Schiller said.
Legally, and financially, both Ohio and Intel are doing what they’re supposed to, DeWine spokesman Dan Tierney said.
“Intel is currently in compliance with their contract. They are putting billions of dollars in investment in Ohio. By any measure Ohio will have received a greater return on investment than any money put out, even if no other investment is made. And that’s not going to happen.”
“Under Ohio law, the earliest the state could take (legal) action is 2029. Until then, we are following the law,” Tierney said.
On Sept. 26, Sen. Bernie Moreno did push back, sending Intel’s Tan a letter, demanding answers for the construction delays.
“Unfortunately, the site’s development is nowhere near where your company said it would be. This was the largest investment in Ohio’s history and was initially projected to create 3,000 Intel jobs and 7,000 construction jobs over the course of building the two factories,” Moreno wrote, demanding a response within 10 days.
Moreno’s office has not responded to repeated requests from The Dispatch about his deadline or whether Intel responded.
(This story was updated to change or add a photo or video and to meet our standards.)
Growth and development reporter Dean Narciso can be reached at dnarciso@dispatch.com.
This article originally appeared on The Columbus Dispatch: Intel stock at 18-month high but silence about New Albany chipmaking
Reporting by Dean Narciso, Columbus Dispatch / The Columbus Dispatch
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