Intel’s CPU Shortage to Continue Until Next Year

Intel’s CPU shortage that started in 2018 was expected to end by Q4 this year. Unfortunately, in more recent updates, it is likely that this shortage will last well into 2020, giving AMD a chance to further increase its market share.

Intel has remained tight-lipped on this subject, but the company’s major PC OEM partners have spoken up, saying that this shortage could last a few more quarters and possibly even more if Intel is not able to sort out the issue.

Alex Cho, President at HP’s Personal Systems Business has said that this shortage is affecting all sectors of Intel’s CPU manufacturing process and not specifically processors. It is affecting almost all of the company’s products and it’s a big problem.

Gianfranco Lanci, the Chief Operating Officer at Lenovo said that Intel’s CPU constraints are a major concern and are limiting the growth of the PC market this year. He said that if it’s a manufacturing problem, it can be fixed easily, even within a day. But if it’s an architectural problem, then Intel is going to need some major restructuring.

Supply chain sources have said that Intel is rapidly shifting towards the 10nm and 7nm processes to produce high-end Xeon chips used in servers. The delay in the rollout of these 10nm chips has contributed towards the shortage in CPUs and has caused manufacturing plants to be out of commission.

This leaves AMD in a very favorable position as the company is suffering from no such shortages. AMD has gotten better at producing CPUs over time, and this is a major opportunity for AMD to leave Team Blue further behind in the competition.


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