Intel excuse for CPU shortage, which is still a problem (AMD will be happy to hear)

Intel excuse for CPU shortage, which is still a problem (AMD will be happy to hear)

In a letter posted via its online newsroom, Intel apologizes for processor shortages that have been plaguing potential buyers of its processors for some time. The letter, written by Michelle Johnston Holthaus, Executive Vice President and General Manager of Sales, Marketing and Communications at Intel, begins: "I want to express my sincere apologies for the consequences of recent delays in shipments of processor PCs on your business. Thank you for your continued partnership." I'd also like to tell you about our actions and investments to improve the supply/demand balance and support you with cutting-edge Intel products. Despite all our efforts, we still have not resolved this issue. "As you're probably aware, out-of-supply issues have been a concern for Intel for some time now, and the chip giant's problems with producing enough 14nm processors to keep up with demand have continued since power returned. .'last year. 10nm to be viable in terms of mass production.) In the letter, Intel further indicated that it had invested "record" levels of capital to increase 14nm wafer production capacity during 2019 (while increased by 10nm).The company also announced that it has expanded its own production capacity and used more foundries to produce more Intel processors.All these efforts have led to increasing the supply of PC sound processors by double digits in the second half of this year compared to the first half of this year 2019. Holthaus then notes: "However, the continued growth of the market (in personal computers) in 2019 exceeded our efforts and exceeded third-party forecasts." The demand for processors is such that Intel still cannot cope, despite all these efforts, it is essentially the last and last of the current situation. While supply remains tight, Intel claims to be "less able to absorb the impact of the variability in production seen during the quarter."

Vision 2020

We recently heard rumors (from Intel partners, including major laptop makers) that processor shortages could last into 2020, for at least a quarter or two, and that the speculation would seem to tie in with Intel's latest comments on the issue. Meanwhile, Intel is under new pressure from AMD, which is raging among the latest Ryzen 3000 processors, not to mention Epyc server chips. And this leaves Intel in a strange and uncomfortable position of facing a huge supply-demand conundrum, while facing heavy pressure from AMD that has forced Intel to cut prices on some processors despite the lineups. unstable supply. Thus, Intel is dragged back and forth by stockouts and different requirements for price reductions. At the same time, the dominance of Ryzen 3000 desktop processors is creating new demands for Intel to release the new 14th-gen Comet Lake processors, a further XNUMXnm refinement that, admittedly, looks impressive. in light of the recent leaks we have experienced. seen. Through the bleeding computer