Intel Shares Tumble 2.65% as High-Stakes Ohio Chip Project Faces Delays and Demand Doubts with $1.8B Volume Ranking 63rd

Intel (INTC) closed at $19.73, down 2.65% on July 31, with a trading volume of $1.80 billion, up 31.63% from the previous day and ranking 63rd in market activity. The stock’s performance coincided with renewed scrutiny over its $28 billion Ohio chip manufacturing project, which faces delays and uncertainty over external customer demand. Intel recently announced it would slow construction timelines to align spending with market demand, a move reflecting broader operational challenges amid weak sales and restructuring efforts under new CEO Lip Bu Tan.

The Ohio project, initially hailed as a historic investment, now risks cancellation if Intel fails to secure key clients for its advanced A14 chip node. Tan emphasized the need to build trust with external partners, but the absence of major orders raises concerns about the project’s viability. Analysts note that halting operations in Ohio could cost Intel hundreds of millions in incentives and force reliance on third-party manufacturers, further straining margins. The project’s fate also impacts Ohio’s economy, which anticipates 3,000 jobs tied to the facility.

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