Intel OEMs face crisis despite hiking PC chip supply by double digits

Intel said on Wednesday it was increasing its reliance on contract chip manufacturers to ramp up supply of chips used in personal computers as the company struggles with shipment delays amid higher demand.
Intel gaming processor
Intel said supply remained extremely tight though it has expanded its manufacturing capacity and increased second-half PC chip supply by double digits compared with the first half.

“Despite our best efforts, we have not yet resolved this challenge,” the chipmaker said in a letter, in which it also apologized to its customers and partners for the delays.

Michelle Johnston Holthaus Executive Vice President General Manager, Sales, Marketing and Communications Group, said: “We have invested record levels of Capex increasing our 14nm wafer capacity this year while also ramping 10nm production.”

In addition to expanding own manufacturing capability, Intel is increasing the use of foundries to enable Intel’s differentiated manufacturing to produce more Intel CPU products. The added capacity allowed Intel to increase its second-half PC CPU supply by double digits compared with the first half of this year.

Intel had said in October that demand in the PC business was outstripping its ability to add capacity and it was considering outside chip makers.

The US-based chipmaker reaffirmed its forecast for the fourth quarter.