Investing.com - Intel’s $28 billion chip plants in Ohio are facing further delays. Shares of Intel Corporation (NASDAQ: INTC )rose 2.7%.

The first factory in New Albany is now set to be finished by 2030, with operations starting between 2030 and 2031—at least five years later than planned.

Intel has been cutting costs after its push to become a contract chipmaker strained its finances. The company said the delays will help align factory operations with market demand and manage capital wisely.

"We are taking a prudent approach to ensure we complete the project in a financially responsible manner," said Naga Chandrasekaran, general manager of Intel Foundry Manufacturing.

The second Ohio factory is now expected to be completed in 2031 and start operations in 2032.