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Dive brief:
- Semiconductor manufacturer Intel has delayed the construction deadline for its $20 billion Licking County manufacturing facility through 2026 or 2027, according to a company statement shared with Construction Dive.
- The chipmaker originally intended to complete the facility by 2025, but pushed back its production target due to business conditions and the demand environment, the company said.
- Persistently high interest rates, labor shortages and regulatory delays continue hinder construction activity, according to construction trade organizations. That includes megaprojects like Intel’s $20 billion plant, the largest private sector investment in Ohio history.
Diving knowledge:
Private sector construction projects continue to face a number of obstacles, according to the latest construction spending report.
While demand appears to be strong for the construction industry overall, persistent shortages of skilled workers, lagging federal investments and tighter financing conditions may limit growth, particularly in private construction projects. according to the Associated General Contractors of America. Intel said its installation depends on the demand environment and overall business conditions.
However, Intel affirmed its commitment to the project and confirmed that construction will continue despite the delay in the completion date. The company noted that conventional construction timelines for semiconductor manufacturing facilities range from three to five years from breakout, meaning the new timeline now aligns with the rules of the industry In addition, Intel highlighted its successful completion first phase of construction in his statement.
The project started in September 2022. Since opening, site contractors have:
- More than 32,000 cubic meters of concrete were poured.
- About 15,000 linear feet of underground pipe has been installed.
- Over 210,000 linear feet of underground conduit was laid.
Numerous general contractors have won work on the project, including Gilbane Building Co., Bechtel, McDaniel’s Construction, Northstar Contracting and GTSA Construction Consulting.
