Intel has begun installing high-value equipment at its new Arizona fab while advancing construction in Ohio, where the company’s flagship project is running five years behind schedule.
Intel has begun installing equipment at Fab 62, its newest chip plant on the Ocotillo campus in Chandler, Arizona, while also advancing work at its long-delayed site in Ohio, according to Bloomberg and an update from manufacturing chief Naga Chandrasekaran on the company’s website. Fab 62 is positioned next to Fab 52, which is already operating, and Intel says the new facility is due to come on stream in early 2028. Installing tools is one of the most expensive phases of a chip plant build-out, with some machines costing hundreds of millions of dollars.
The Arizona project marks another step in Intel’s wider effort to expand domestic production capacity. Business Journal reports that Fab 62 is Intel’s sixth high-volume manufacturing site in Arizona and forms part of the company’s broader $100 billion commitment to semiconductor manufacturing in the US. The same reporting says the plant is expected to begin production by the end of 2028, underscoring how central the Ocotillo campus has become to Intel’s manufacturing network.
In Ohio, the company has installed the first major roof truss at its New Albany site, a visible milestone for a project that has slipped repeatedly. Quartz reported that the factory was originally meant to be completed in 2025, but that the timetable has since moved to 2030. Other reports say the site is now at least five years behind its initial plan, reflecting the scale of the delay at what was once intended to be one of the world’s largest chipmaking complexes.
The renewed momentum comes as Intel tries to match factory spending more closely with demand. Bloomberg reported that orders for its data centre processors, which power AI services, are growing faster than the company can produce them. Intel has also committed $5.7 billion to expand Xeon production in Ireland and raised its capital spending guidance in July to more than $20 billion for this year, with materially higher spending expected in 2027. Chief executive Lip-Bu Tan, who took over in March 2025, has said projects such as Ohio will proceed only when there is sufficient business to justify them. That caution has come against a backdrop of limited foundry customer wins, though Reuters previously reported that Apple was in early talks over possible factory use and that Intel has joined Elon Musk’s Terafab project as a manufacturing partner. Bloomberg also noted that the US government holds a stake in Intel, while the company proposed a $15 billion share sale in August to strengthen its finances.
Disclaimer: This content is intended for informational purposes only. Readers are advised to exercise their own judgement, conduct due diligence, or consult a qualified expert before acting on any information provided.
