Why there is shortage of INTEL CPU's ?
By MYBRANDBOOK
Intel battles to get on top of CPU shortages that have plagued its business in recent times, the world's largest computer makers are hunkering down for six months of tight supply. Reason, it is very unfortunate when any key component goes into shortage.
Intel CPU shortages are here to stay ,will continue for another five months..
The global PC market continued to show signs of stabilisation thanks to the continued commercial refresh and stabilising consumer demand and the surge in Windows 10 PC refreshes, demand from cloud infrastructure builders and Apple, coupled with struggles to produce 10nm silicon has caught Intel short.
As per TrendForce , has adjusted its 2018 global notebook shipments projection downwards due to the worsening shortage of Intel CPUs. Intel originally planned to begin mass production of CPUs based on its latest Whiskey Lake platform in 3Q18, when the notebook market would be in the busy sales season. However, PC-OEMs are now finding an insufficient supply of Whiskey Lake CPUs, which has disrupted vendors’ notebook shipment plans for this year’s second half. Therefore, TrendForce now estimates that this year’s total notebook shipments will drop by 0.2% YoY, and the CPU shortage may further impact the entire memory market as well.
The report says, "Last year it was the shortage of DRAM and the year before that we had the fire, and there were battery shortages, and this time it is chips from Intel, and I think this affects sub scale partners more than it affects larger partners. With this AMD’s fantastic portfolio of products will have a good time to grow. AMD is going to be a good alternative to fill the gap.
Robert Swan, Intel's CFO and interim CEO said, wrote a letter to reassure customers that Chipzilla would be able to be able to meet demand, prioritising production of Xeon and Core processors to serve "high-performance segments" of the market. He admitted, however, that "supply is undoubtedly tight, particularly at the entry-level of the PC market".
The PC makers had warned that Intel's CPU shortage will affect the forthcoming launch of Intel's ninth-generation Core processors. The shortage has been caused by high demand for Intel's Xeon data centre microprocessors, which Intel has chosen to prioritise over consumer and business PC demands.
In July, Intel says, the 14nm supply challenges during its earnings call, saying, "Our biggest challenge in the second half [of 2018] will be meeting additional demand, and we are working intently with our customers and our factories to be prepared so we are not constraining our customers' growth. It seems, 2018 is not a good year for Intel; the company has been rocked by security problems from Spectre and Meltdown and pinched by manufacturing issues related to its long-delayed 10nm process.
The worsening shortage of Intel CPUs is having a significant impact on the global notebook shipments for 2018, and may influence the entire memory market as well, causing further price decline of DRAM products, says TrendForce. The experts says, the shortage may not end until sometime in the first half of 2019.
Another reason is with the an unexpected $4.5 billion increase in demand as a key contributor, but other aspects, such as the delay of the company's 10nm node, it will now push more unanticipated demand back to the 14nm production lines.
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