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Guru3D.com » News » Intel open letter: Delivery difficulties continue

Intel open letter: Delivery difficulties continue

by Hilbert Hagedoorn on: 11/21/2019 08:48 AM | source: | 7 comment(s)
Intel open letter: Delivery difficulties continue

In an open letter to customers and partners, chipmaker Intel has made it clear that despite all efforts, its own processor delivery issues will continue in the fourth quarter of 2019. Not necessarily a bad thing for intel, as they can seel anything and everything they produce.

Due to continued higher demand, and despite the ramp-up expansion of the 14-nm wafer capacity and a further ramp of the 10-nm manufacturing is not able to meet demand, which will lead to longer waiting times for customers. At the same time, it was even stated that the production of certain products (probably chipsets) outsourced to contract manufacturers to gain more capacity for processors. 

Intel -- 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,

/s/ Michelle Johnston Holthaus

Michelle Johnston Holthaus

Executive Vice President

General Manager, Sales, Marketing and Communications Group

Forward-Looking Statements: This letter includes forward-looking statements based on expectations as of November 20, 2019, which are subject to many risks and uncertainties that could cause actual results to differ materially from those anticipated. Important factors that could cause actual results to differ materially are set forth in Intel’s Q3 2019 earnings release and our most recent reports on Forms 10‑K and 10‑Q, available at intc.com.







« Demand for DRAM is increasing again - which will drive prices up · Intel open letter: Delivery difficulties continue · NVIDIA Working on Tile-based Multi-GPU Rendering Technique Called CFR - Checkered Frame Rendering »

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Netherwind
Senior Member



Posts: 7994
Joined: 2009-11-13

#5733639 Posted on: 11/21/2019 09:08 AM
*sell ;)

undorich
Member



Posts: 46
Joined: 2016-08-12

#5733919 Posted on: 11/22/2019 09:04 AM
hmm. and the trade war with china has nothing to do with it ?

nosirrahx
Senior Member



Posts: 394
Joined: 2013-04-05

#5733939 Posted on: 11/22/2019 10:32 AM
Almost comes off as:

"See, AMD isn't crushing us. We are doing so well that we can't possibly make chips fast enough for our eager customers."

......almost.

anticupidon
Senior Member



Posts: 6749
Joined: 2008-03-06

#5733941 Posted on: 11/22/2019 10:37 AM
/mocking tone on
This should be put on the Joke of the Day section, right?


/mocking tone off
Yeah, Intel what are trying to do? Calm down and reassure investors and shareholders?

X7007
Senior Member



Posts: 1726
Joined: 2003-07-21

#5734521 Posted on: 11/24/2019 11:55 AM
Ho sad sad intel, they so sad pandas. They didn't invent anything new for the past 5 years. and when they started to have competition then they remember to give us new things cheaper. it's about time they start to get their own medicine because that's what they deserve.

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