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Intel CPU shortages to worsen in the second quarter

By Shawn Knight · 9 replies
Mar 11, 2019
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  1. Supply shortages hit in August 2018 but some market watchers believed the issue would gradually resolve itself after vendors completed inventory prep for year-end sales. As Digitimes notes, however, this didn’t come to fruition as the supply gap hovered around the same level in Q4 as it did the previous quarter.

    As Intel shifted much of its capacity to high-end processors with better profit margins, lower-end chip production suffered. The development has prompted some manufacturers to opt for alternate Intel solutions with others turning to AMD.

    As a result, AMD’s worldwide notebook shipment share has climbed from 9.8 percent in Q1 2018 to 15.8 percent in the first quarter of this year. The chipmaker’s share is expected to rise to 18 percent in the second quarter of this year, its peak for 2019.

    Come July or August, Intel should be volume producing 14nm parts which will “completely resolve the shortage problem.”

    Intel previously said it would begin mass production of 10nm Ice Lake parts in the second half of 2019 although according to Digitimes Research’s upstream supply chain sources, Intel’s production schedule for the 10nm process still has lots of issues… so many that Intel may skip over 10nm entirely and dive into development of the 7nm process.

    Lead image courtesy Dragon Images via Shutterstock

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  2. I've experienced this firsthand. I ordered some new PCs for work in September of 2018 and they didn't arrive until mid-February 2019.

    We have since switched to ordering exclusively AMD-based laptops and desktops because of this. I can't wait 6 months for new machines.
     
  3. pcnthuziast

    pcnthuziast TS Evangelist Posts: 569   +174

    AMD's upcoming launch is gonna be very interesting. Very good chance I'll be getting my first red team chip. 3700x at least. Hopefully the prices will be competitive, but it's been ages since they've been in a position to unseat intel for a short while as the best choice for gamers and we may see astronomical prices like way back when their FX line destroyed the pentium 4.
     
    max0x7ba likes this.
  4. Adi6293

    Adi6293 TS Maniac Posts: 195   +166

    AMD will have to rise prices a bit, you can't compete with a company that makes 10 times what you make forever but even if 3700X that's rumored to be 12C cost $400 that's still a bargain next to 9900K :)
     
  5. Evernessince

    Evernessince TS Evangelist Posts: 3,913   +3,364

    Pricing isn't the problem for AMD. All their consumer processors are made from an extremely high yield chiplet. They have a significant cost advantage over intel in this regard.
     
  6. Cycloid Torus

    Cycloid Torus Stone age computing - click on the rock below.. Posts: 4,000   +1,177

    I think I'll pay attention to the 22nm chips if they dip below 1/3 MSRP in used resales.
     
  7. pcnthuziast

    pcnthuziast TS Evangelist Posts: 569   +174

    I was eluding to arbitrary inflation and gouging actually. Companies will absolutely do that if they're in that position.
     
  8. Adi6293

    Adi6293 TS Maniac Posts: 195   +166

    None the less they need to start making more money if they want to compete with Intel in the long run, 1.5 billion a quarter wont cut it :)
     
  9. Evernessince

    Evernessince TS Evangelist Posts: 3,913   +3,364

    Agreed
     
  10. toooooot

    toooooot TS Evangelist Posts: 769   +377

    Into the bright future!
     

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