NEW ALBANY, Ohio (WCMH) — Intel’s $20 billion computer chip manufacturing plant in New Albany will be spun off into a new company as part of a restructuring plan aimed at boosting investor confidence and reversing falling stock prices.

Intel CEO Pat Gelsinger announced the move on Monday, noting that the Ohio One facility in Licking County, along with a new project to create artificial intelligence chips for Amazon Web Services, will eventually operate under a subsidiary of Intel.

“A subsidiary structure offers significant advantages,” Gelsinger said. “It allows our external foundry customers and suppliers to operate with more independence from the core of Intel. Crucially, it also gives us flexibility in pursuing independent funding and optimizing capital for maximum growth and shareholder value.”

Investors reacted positively, sending Intel’s stock up 7% in premarket trading Tuesday.

In 2022, Intel chose New Albany as the site for multiple chip fabrication plants, part of its mission to bring chip manufacturing back to the U.S. and create a “Silicon Heartland.” However, construction delays have been reported, despite the transportation of massive components across Ohio.

Intel’s dual role as both chip designer and manufacturer has raised concerns among investors, who worry about potential conflicts of interest. Additional scrutiny has come from federal and state funding agreements tied to the Ohio One project.

JP Morgan analyst Harlan Sur supported Gelsinger’s decision, calling it a logical step toward improved transparency and efficiency. “This move aligns with Intel’s broader strategy and should not come as a surprise,” Sur wrote in a client note.

Intel is also undertaking cost-cutting measures, including voluntary employee separations and early retirements, aiming to reduce its workforce by 15,000 by year’s end. The company is also downsizing its real estate holdings.

The first fabrication plants in New Albany are expected to be operational by the end of the decade.