There have been several conjectures regarding the shortage in the company’s supply of CPUs, and it seems like they are true. Interim Intel CEO Bob Swan wrote an open letter explaining the situation and the steps it’s going to take to deal with it. He also says that the rebounding PC industry driven by the rising demand of commercial and gaming systems is to be blamed for the shortage.
With that, Intel expects to see a decent growth in PC shipments, and in the mean time, it will focus on prioritizing its premium market and delivering higher-end Xeon and Core CPUs. Bob doesn’t address the competition arising from AMD’s present momentum in the market, but he hopes to improve the situation for the persistent yield issues for its 10nm architecture and ramp up its production in 2019. He said that Intel has enough supply to meet its full-year revenue outlook despite the tight supply.
Apart from the chipmaker’s plans of serving the high-performance segments of the market, it is also up for investing $15 billion in capital expenditures this year including $1 billion on its 14nm manufacturing facilities in Oregon, Arizona, Ireland and Israel. The current market issues have caused a hassle for the whole PC industry. Though the shortage might seem like a small problem, in the long run, lack of processors couple with the increased demand can result in a major issue as the market continues to expand.