Shortage Intel Processor on the Rise - Price Hike Expected

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We've talked a number of times already about the fact that the demand for processors is high and that Intel does not have enough production capacity, especially on the 14nm node. This creates an unbalance in the market, driving prices up.

It seems to be happening again as shortages of Intel processors are rising again. DigiTimes mentions it in a news article. The forecast is that the new high on shortage will be in the second quarter. A side note is that the impact this round will be bigger as it is expected due to an increasing demand for Chromebooks and light laptops. So the Core i5s was the worst available last year, according to DigiTimes, there would now be a shift to cheaper chips. The Core i3.

Digitimes Research expects Intel CPUs' supply gap to shrink to 2-3% in the first quarter with Core i3 taking over Core i5 as the series hit hardest by shortages. In the first quarter of 2019, the Core i5 processors featuring Coffee Lake architecture are now having the worst supply shortfall. Some of the demand for Intel's entry-level Atom processors has turned to AMD, while some others have opted for Core i3 processors. The rising demand for Core i3 processors has also started creating tight supply in the market. With demand for Chromebooks to pick up and brand vendors to begin mass shipping their new models all using processors that are in tight supply, Intel CPUs' supply gap is expected to grow 1-2pp sequentially in the second quarter of 2019, with the overall shipments unlikely to see much growth. Intel is expected to have new 14nm capacity join production in the second half of 2019. Intel's existing 14nm fabs are mainly located in the US and Ireland and the newly expanded capacity in Arizona, the US is expected to begin volume production in July or August, to boost Intel's overall 14nm capacity by 25% and completely resolve the shortage problem. Although Intel has announced its 10nm Ice Lake will begin mass production in the second half of 2019, Digitimes Research's sources from the upstream supply chain has revealed that there are still many issues with the CPU giant's mass production schedule for 10nm process.


Core i5-9600K

Shortage Intel Processor on the Rise - Price Hike Expected

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