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Intel Acknowledges Supply Challenges in Open Letter

Category: Manufacturers
Posted: 09:44AM

There have been rumors for weeks that Intel has been having issues supplying enough processors to meet demand, and this has led to different speculations on how it may impact the market, such as potentially seeing a decrease in RAM prices as fewer new computers and laptops are being ordered that need them. Now Intel has released an open letter acknowledging supply challenges and stating what the plan is to address them currently. The only information it suggests for the cause is a growth in demand for chips beyond what Intel expected.

To address the supply issue, Intel is going to be prioritizing its Xeon and Core processors, so it can serve the high-performance parts of the market. This means the entry-level parts are going to be a lower priority, so supply for them may tighten further, but Intel believes it will still be able to hit its full-revenue outlook. Additionally, it is increasing its capital expenditures with an extra $1 billion going to the 14 nm manufacturing sites in Oregon, Arizona, Ireland, and Israel to better meet demand. Looking forward though, Intel expects its yields on its 10 nm process to improve so volume production can occur in 2019.

Source: Intel

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