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Guru3D.com » News » Intel processor shortages to continue into 2Q19 says ASUS

Intel processor shortages to continue into 2Q19 says ASUS

by Hilbert Hagedoorn on: 11/15/2018 10:01 AM | source: digitimes | 28 comment(s)
Intel processor shortages to continue into 2Q19 says ASUS

We've touched the topic a couple of times but it's now confirmed by ASUS as well. With issues on 10nm, Intel is running out of space on 14nm, and they have a lot of processors and chipsets on that node. The fabrication shortage at 14nm means fewer processors fabricated, resulting in processors shortages on a global scale. And that drives up prices. 

The current Coffee lake (Core 8000 series) is currently suffering from increased prices, some procs even have risen 40 to 60% in price, overall for the higher end product it's 15 to 25% of an increase. The news on this keeps stacking up and is now confirmed by the CEO of ASUS as well:

Asustek Computer has seen its shipments to the DIY sector and related motherboards affected by Intel's supply strategy for CPUs, with the prospects that the CPU shortages, particularly those for desktop PCs, will continue into the second quarter of 2019, according to company CEO Jerry Shen. The continued CPU supply crunch, escalating US-China trade disputes, and increasing competition in the notebook segment in Europe have pressed down Asustek's "operational visibility" for the fourth quarter of 2018 to the lowest level of 20% compared to an over 50% seen in previous years, Shen said. Although Intel has pledged to address the supply issues since September and has continued to pour investments to ramp up output from its 10nm process, the tight CPU supplies have not been solved as the US chipmaker has given the priority to the production of high-end Xeon and Core series CPUs, instead of CPUs for the entry-level or other consumer models, Shen indicated. However, with Intel maintaining its shipments of CPUs to the server and gaming PC sectors, Asustek's gaming PC business has seen little impact from the CPU shortfalls, Shen noted. 

Intel already moved chipset fabrication of for example the H310C chipset back to 22nm, just to free up space at 14nm. Intel also outsourced production towards TSMC. 14nm Xeons and respective chipsets are facing shortages as well. Basically the shortages are not solely the effect of issues on the 10nm node, worldwide higher demand for chips is the main cause, and in fact maybe even a luxury problem for Intel. Intel also has extended desktop processors in 14nm, for example, the pending Core 9000 series will also be based on the very same 14nm fabrication node. Intel is simply sitting at this 14nm process longer than it expected.

We mentioned this before,  this all is still good news for Intel, as they fabricate chips and there's already sold, to they ooze out products at maximum capacity. It's just on the consumer and business side that due to these shortages, prices jump up.







« Microsoft patches actively exploited leak and 61 other vulnerabilities · Intel processor shortages to continue into 2Q19 says ASUS · SK Hynix Announces 1Ynm 16Gb DDR5 DRAM »

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icedman
Senior Member



Posts: 1083
Joined: 2013-02-22

#5607397 Posted on: 11/15/2018 10:20 AM
I cant see how there is a shortage now that Intel is even less competitive than it used to be in the past and there are plenty of ryzen CPU's available at much better prices.

m4dn355
Senior Member



Posts: 211
Joined: 2007-06-15

#5607431 Posted on: 11/15/2018 11:47 AM
I cant see how there is a shortage now that Intel is even less competitive than it used to be in the past and there are plenty of ryzen CPU's available at much better prices.

In the eyes of OEMs and vast majority of consumers all CPUs are belong to intel. . .

umeng2002
Senior Member



Posts: 1003
Joined: 2006-09-02

#5607433 Posted on: 11/15/2018 11:52 AM
"Shortages" keeping their prices up just when AMD starts being competitive or even beating them... sounds fishy.

Noisiv
Senior Member



Posts: 7723
Joined: 2010-11-16

#5607436 Posted on: 11/15/2018 12:03 PM
One would think some of that demand increase for high-margin large-die Core and Xeon CPUs would spill over to AMD. Yet...

OTOH numbers don't lie.
(Q3 2018 Financial results)

"Shortages" keeping their prices up just when AMD starts being competitive or even beating them... sounds fishy.


Are you implying that shortages are artificial, or even worse - a complete lie?
That on top of Intel losing market share to AMD, Intel is hellbent on purposely losing even more market by jacking up prices and withholding their products?

Where is the logic in that?

Kaarme
Senior Member



Posts: 2316
Joined: 2013-03-10

#5607448 Posted on: 11/15/2018 12:54 PM
How does TSMC have so much capacity that now they are even manufacturing for Intel as well? It's weird Intel can't handle even its own products while TSMC can handle God only knows how many, including the likes of Apple, Nvidia, and newest AMD ones.

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