The chip-maker says that the new plant — dubbed “Fab 42” — will remain vacant while it works to make upgrades to other facilities nearby. Intel had previously planned to open the new plant in late 2013. More than 1,000 workers have been employed at the facility since 2011, Reuters noted.
An INTC spokesperson noted that advanced chip-making equipment had not yet been installed in the new plant, which was to produce 14 nanometer processors. INTC said it will adapt its existing facilities in Chandler to make 14 nanometer chips. Those facilities currently produce 22 nanometer chips.
Intel is facing weakening demand for chips designed for personal computers. PC sales have dropped sharply over the past two years in the face of consumers’ rising appetite for tablets.
The Chandler plant was touted as an example of reinvigorated U.S. manufacturing by President Barack Obama in 2012.
INTC stock rose modestly in Wednesday morning trading. Despite pressure from declining PC sales, INTC stock has climbed more than 25% since March 2013.
With a flurry of new devices shown at this year’s Consumer Electronics Show (CES) in Las Vegas, INTC stock could be positioning itself to benefit from rising interest in networked appliances, potentially driving INTC stock higher.