Intel earnings report says 7nm process will suffer a six-month delay

Cal Jeffrey

Posts: 2,449   +562
Staff member
Good news, bad news: Intel just released its Q2 2020 earnings report. The good news is revenue is up by 20 percent, and earnings per share saw a 16-percent uptick. The bad news is that the company has to delay its 7nm CPUs by at least six months because production has fallen a year behind. In response, it will be increasing efforts producing 7nm and 10nm wafers.

Intel released its second-quarter earnings report for 2020 on Thursday. The company mentioned that the rollout of its 7nm processors would be delayed by six months. It appears that production is backed up and is 12 months behind schedule.

"The company's 7nm-based CPU product timing is shifting approximately six months relative to prior expectations," Intel said in its press release. "The primary driver is the yield of Intel's 7nm process, which based on recent data, is now trending approximately twelve months behind the company's internal target."

It cites COVID-19 complications as causing problems in operations and production. The pandemic, and the "unprecedented" measures imposed by authorities, have significantly increased the company's economic and demand uncertainty. However, Intel believes that six months is enough to make up the 12-month deficit.

In the meantime, it will ramp up its 10nm Intel Cores, including "Tiger Lake" CPUs and "Ice Lake" server processors, which should be shipping by the end of the year. It also said that it plans to launch a new line of client CPUs code-named "Alder Lake" in the second half of 2021. This line will include Intel's first 10nm desktop processor and a new server wafer code-named "Sapphire Rapids" based on the same process.

The earnings report did not mention how Intel plans to accelerate both the 7nm and 10nm production lines, especially amid the ongoing coronavirus restrictions and supply chain complications. It promised further explanation would come during its earnings conference call, which happened a few hours ago. However, as of this writing, it has not yet posted the discussion to its earnings results page. Keep an eye out there for more information.

On the upside, year-over-year revenue and earnings per share are up by 20 and 16 percent, respectively. Cloud and communications are also up 47 and 44 percent YoY. These increases moved capital cash flow up 88 percent YoY to $10.6 billion, and paid dividends of $2.8 billion year-to-date.

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Bullwinkle M

Posts: 348   +218
So basically it will literally be YEARS before Intel has a 7nm desktop chip on the market. LMFAO
Intel is exiting the desktop market!

Their investments are now heavy in A.I. and Autonomous Compute

Apple is leaving X86

Microsoft is forcing you and everyone else into the Cloud and away from X86

There is no future for X86 desktops and with Microsoft's Unique Vision for Updates, there is no present either

But that's OK because I'm running the most current/secure and updated Personal X86 Computer on the Planet....

A Sandy Bridge with Windows XP!

 

umbala

Posts: 296   +365
Intel is exiting the desktop market!

Their investments are now heavy in A.I. and Autonomous Compute

Apple is leaving X86

Microsoft is forcing you and everyone else into the Cloud and away from X86

There is no future for X86 desktops and with Microsoft's Unique Vision for Updates, there is no present either

But that's OK because I'm running the most current/secure and updated Personal X86 Computer on the Planet....

A Sandy Bridge with Windows XP!
Your comment is complete and utter nonsense. Nobody's leaving x86 behind except maybe Apple, for now. The fact that you didn't mention AMD is very telling.
 

MasterMace

Posts: 130   +86
Based on the shitacular showing of 10nm, which is still 2+ years out, and 7nm is already facing the same delays, even 2024 is optimistic.
 

Bullwinkle M

Posts: 348   +218
Your comment is complete and utter nonsense. Nobody's leaving x86 behind except maybe Apple, for now. The fact that you didn't mention AMD is very telling.
I never said Intel was leaving the X86 market

But they might be leaving the desktop market if Microsoft has it's way and forces everyone to the sevice model of Cloud Computing onto Arm everything

Intel can still build X86 servers & workstations, but the desktop market will ultimately be determined by Microsoft and Apple so it's not looking good for X86 desktops

Microsofts view is that Arm is good enough for Cloud Compute, where they can stream you everything for a monthly fee from their X86 servers

Stand alone (offline) applications on desktop X86 machines might still be found in a historical museum (sooner than you think)

....and no, that is not sarcasm!
The future of the Intel desktop is not up to Intel
 

candle_86

Posts: 439   +321
I never said Intel was leaving the X86 market

But they might be leaving the desktop market if Microsoft has it's way and forces everyone to the sevice model of Cloud Computing onto Arm everything

Intel can still build X86 servers & workstations, but the desktop market will ultimately be determined by Microsoft and Apple so it's not looking good for X86 desktops

Microsofts view is that Arm is good enough for Cloud Compute, where they can stream you everything for a monthly fee from their X86 servers

Stand alone (offline) applications on desktop X86 machines might still be found in a historical museum (sooner than you think)

....and no, that is not sarcasm!
The future of the Intel desktop is not up to Intel
It's not really up to Microsoft either. Vista adoption forced Microsoft to extend XP support. If the market says no and keeps using the older products Microsoft will back peddal because the investors want money.
 

neeyik

Posts: 1,131   +1,114
Staff member
Intel is exiting the desktop market!
Intel had a Q2 revenue of $9 billion for their PC-centric sector, helped by a growth in notebooks (along with a decline in desktop). They may well have less interest on the desktop market, but there's no indication that they have any plans to abandon it.

Microsoft is forcing you and everyone else into the Cloud and away from X86
Microsoft reported a revenue of $13.2 billion in the same period for their 'More Personal Computing' sector, which covers Windows OEM (up 18%).

Now while some people are claiming that Apple's move to their own CPUs for their Mac products will ultimately force Microsoft, Intel, and AMD to follow suit, there is again no indication that those companies will set aside the billions of dollars of R&D investment into x86 and switch wholesale to Arm or similar.

Intel can still build X86 servers & workstations, but the desktop market will ultimately be determined by Microsoft and Apple so it's not looking good for X86 desktops
Fundamentally, Intel only has a handful of architectures they use across all of their CPU sectors, so if they're still going to be making x86 products for notebooks, workstations, and servers, then there's little financial reason for them to make an entirely separate architecture just for desktops - especially given that it's a declining sector.

AMD have certainly been working on Arm-based CPU research since they started the Zen project but it's clearly where their priorities lies, given that the former has seen no announcements in the past 5 years.

Apple's share of the desktop computer market is very small, compared to Windows-based platforms, and while competitors follow where Apple leads in the smartphone, tablet, and laptop industries, the design of desktop Macs has been the other way.

Stand alone (offline) applications on desktop X86 machines might still be found in a historical museum (sooner than you think)
You can still purchase 32 bit versions of Windows 10, and with a few command line operations, enable 16 bit application support - 27 years after the last 16 bit version of Windows was released. Claims of the death of x86 have been around for years, but for as long as there is still billions of dollars of revenue to be earned from it, it's not going to go anywhere just yet.
 
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CBTex

Posts: 79   +131
TSMC could be on 5nm by then, this isn't looking good for intel.
Actually, TSMC's 5 nm has already entered volume production. They are talking about risk production for 3 nm next year.

It's really hard to fathom how bad Intel has slipped. That had such a massive advantage.
 

MaxSmarties

Posts: 292   +139
Wow I’m impressed how they screwed things up entirely and still making a lot of money.
Their future lineup for desktop is causing me an headache: could someone sum it up for me ?
 

HardReset

Posts: 789   +338
Their future lineup for desktop is causing me an headache: could someone sum it up for me ?
- Cannon Lake: Skylake @ 10nm, possibly cancelled on desktop
- Ice Lake: Sunny Cove (Skylake successor) @ 10nm+, possibly cancelled on desktop
- Rocket lake: Willow Cove (Sunny Cove successor) @ 14nm, possibly LGA1200
- Alder Lake: Golden Cove (Willow Cove successor) @ 10nm+?, LGA1700, 8 big (GC) and 8 small (Gracemont "Atom") coars
 
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MaxSmarties

Posts: 292   +139
- Cannon Lake: Skylake @ 10nm, possibly cancelled on desktop
- Ice Lake: Sunny Cove (Skylake successor) @ 10nm+, possibly cancelled on desktop
- Rocket lake: Willow Cove (Sunny Cove successor) @ 14nm, possibly LGA1200
- Alder Lake: Golden Cove (Willow Cove successor) @ 10nm+?, LGA1700, 8 big (GC) and 8 small (Gracemont "Atom") coars
Thank you, that was my understanding. So next 11th gen desktop CPU will be Rocket Lake with a backported Willow Cove at 14 nm in early 2021...

Now I’m debated about buying now a 3900X + X570 or wait Christmas for a 4700X + X670...
 

HardReset

Posts: 789   +338
Thank you, that was my understanding. So next 11th gen desktop CPU will be Rocket Lake with a backported Willow Cove at 14 nm in early 2021...

Now I’m debated about buying now a 3900X + X570 or wait Christmas for a 4700X + X670...
Probably so. Intel's plans change so often that nothing is certain. At least 14nm+++++++++++ works unlike others...

x670 will likely be very small upgrade or even rebrand vs x570, but 4000 series is different story.