In a letter posted to their web site, Intel apologizes for their continued CPU shortage, and while they have invested record levels of capital expenditure in their manufacturing, it has not been enough to meet demands.
Even with this increased CapEx, greater production, and increase usage of foundries, due to the strong demand and continued growth in the PC market, the demand has outpaced their manufacturing.
Intel has stated that they will be contacting customers, partners, and distributors individually with more information and revised shipment schedules.
The full text of this statement by Intel's Michelle Johnston Holthaus, Executive Vice President and General Manager, Sales, Market, cam be read below.
November 20, 2019
To our customers and partners,
I’d like to acknowledge and sincerely apologize for the impact recent PC CPU shipment delays are having on your business and to thank you for your continued partnership. I also want to update you on our actions and investments to improve supply-demand balance and support you with performance-leading Intel products. Despite our best efforts, we have not yet resolved this challenge.
In response to continued strong demand, we have invested record levels of Capex increasing our 14nm wafer capacity this year while also ramping 10nm production. In addition to expanding Intel’s own manufacturing capability, we are increasing our use of foundries to enable Intel’s differentiated manufacturing to produce more Intel CPU products.
The added capacity allowed us to increase our second-half PC CPU supply by double digits compared with the first half of this year. However, sustained market growth in 2019 has outpaced our efforts and exceeded third-party forecasts. Supply remains extremely tight in our PC business where we are operating with limited inventory buffers. This makes us less able to absorb the impact of any production variability, which we have experienced in the quarter. This has resulted in the shipment delays you are experiencing, which we appreciate is creating significant challenges for your business. Because the impact and revised shipment schedules vary, Intel representatives are reaching out with additional information and to answer your questions.
We will continue working tirelessly to provide you with Intel products to support your innovation and growth.
Sincerely,
Michelle Johnston Holthaus
Executive Vice President
General Manager, Sales, Marketing and Communications Group
Comments
NickAu - 4 years ago
Are people still buying Intel CPU's? I know 1 thing, my next CPU wont be Intel.
forum11 - 4 years ago
"Are people still buying Intel CPU's? I know 1 thing, my next CPU wont be Intel."
My sentiments exactly.