Intel (INTC) is delaying construction of a new $20 billion U.S. microchip and semiconductor manufacturing plant in Ohio due to weak market conditions.
Intel had previously expected to have the Ohio plant up-and-running in 2025. Construction on the manufacturing facility has now been pushed back to late 2026.
The microchip and semiconductor company recently issued financial results for the fourth quarter of 2023 that missed Wall Street targets and lowered its forward guidance.
Intel said that it is grappling with a slowdown in demand for its microchips, particularly in the personal computer (PC) and laptop segments.
Intel is also losing market share to competitors such as Nvidia (NVDA) and Advanced Micro Devices (AMD) in its traditional server chip and data centre business units.
The stock of Intel has declined nearly 10% so far in 2024, with most of that decline coming after the company’s Q4 2023 results were released in late January.
Intel’s share price is up 44% over the last 12 months and currently trading at $43.36 U.S. per share.