Intel Publicly Apologizes For CPU Shipment Delays

Intel CPU shipment

Intel CPU shipment delays have been a problem for some time now and it seems that the issue not going to be resolved any time soon. In parts of the world, customers are unable to get their hands on the Intel CPUs that they want. This has made an opening for AMD and we have seen plenty of people make the shift from Intel to AMD in the recent few months.

Michelle Johnston Holthaus, the Executive Vice President, General Manager, Sales, Marketing and Communications Group at Intel apologized for the CPU shipment delays that customers are facing. Here is what she had to say regarding the matter:

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.

We know that Intel has been having issues making 10nm chips and 14nm chip shortage is not helping sales either. Keeping in mind that AMD has already shipped 7nm CPUs and is going to reveal 7nm+ CPUs next year. We should hear more about 7nm+ at CES 2020.

Holthaus then went on to talk about what the company has been doing to solve the issue. Here is what she had to say regarding the matter:

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.

She admitted that even though all these measures were taken, the company has been unable to keep up with the demand and the supply of Intel CPUs has been very tight indeed. Intel CPU shipment delays are indeed due to the lack of supply and excess demand which is ever increasing. Holthaus went on to mention the following:

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.

While it is great that Intel has talked about the issue and has apologized for the delay in CPU shipments, it is safe to say that AMD is going to and has been taking full advantage of all this. AMD has the upper hand when it comes to value for money and core count, now AMD has the upper hand when it comes to supply as well.