Intel CPU Shortage To Continue Till Q3 2019

In a recent earnings conference call, Intel admitted that overcoming the CPU shortage will take until Q3 2019, despite an investment of $1.5 billion in an effort to increase the production capacity. The shortage has plagued the entire PC market since the second half of last year.

The 10nm chips are also rumoured to be revealed later this year, but no concrete information is available regarding the exact release schedule. Here’s what Intel CEO said in the call according to the transcript:

“Specific areas where we need to improve execution include meeting customer demand and delivering on our 10-nanometer lineup of products, and we are making progress. Our supply constraints have had a disruptive impact on our customers and ecosystem. We’ve committed never again to be a constraint on our customers’ growth. We’ve increased capacity to improve our position in the second half, although product mix will continue to be a challenge in the third quarter as our teams align available supply with customer demand.

As I shared earlier, our confidence in 10-nanometer is also improving. In addition to the manufacturing velocity improvement I described earlier, we expect to qualify our first volume 10-nanometer product, Icelake, this quarter and are increasing our 10-nanometer volume goals for the year. I’ll shift now to our full year outlook. Going forward, George will deliver our forecast. But given this is his third week with us, I’ll share my thoughts on our full year reset and he’ll review our first quarter results and second quarter guide.”

The interesting thing to note, is that according to Intel’s roadmap, the SKUs for CPUs will continue using the 14nm process well until the end of 2020, even 2021. Maybe even after that, which really begs the question whether Intel plans to announced the 10nm chips any time soon.

Another noteworthy factor is that due to the shortage of CPUs, Intel has been jacking up the prices of currently available processors, while AMD prices have remained more or less stable. This has led to AMD gaining a considerable share in the CPU market, and if the trend continues, it could very well spell trouble for the blue team.

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