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Intel boasts of its own success in tackling processor shortages
Over the past several quarters, a rare reporting event by Intel did without discussing the situation with a shortage of production capacities, which was initially provoked by a delay in the development of 10nm technology. Now Intel is past its worst times, which allows it to assess its own success in increasing production volumes with some arrogance.
Image source: Intel
It’s no secret that AMD’s 7nm Ryzen 5000 processors remain in short supply, and the company continues to expand its range of products manufactured according to these technological standards by the Taiwanese company TSMC. Some market players and consumers are rightly concerned about the availability of AMD’s new 7nm products. The head of the company Lisa Su (Lisa Su) made it clear this week that in the case of video cards, it makes sense to be patient until the middle of the year, since it will not be possible to eliminate the deficit faster, provided that the restrictions inherent in the pandemic remain.
Intel in its rhetoric against this background is noticeably bolder. She began to remind more often that in 2021 it increased the production volumes of all processors by 25%, and the expansion rate of 10nm products turned out to be higher than expected. Now consumers are supplied with 10-nm products at once by three Intel enterprises located in the USA and Israel. By the second half of the year, mass production of Alder Lake processors will begin using the most advanced version of the 10nm technical process, in the internal Intel nomenclature referred to as “Enhanced SuperFin”.
Intel CEO Robert Swan said in a recent interview that the company will not stifle the growth of its partners because of the availability of processors, as it produces them in the right quantities. Corporate Vice President Chris Walker at Event J.P. Morgan added that the peak of problems with having sufficient production capacity has already passed, and now it feels more confident in its own abilities. Intel’s executive vice president, Gregory Bryant, says Intel is now able to cover changes in market demand within a quarter by flexibly responding to changes in demand. This year, in the client segment, the company will start producing more 10nm processors than 14nm.
A year and a half ago, it was the high degree of dependence on 14nm technology that drove Intel into a trap with limited production volumes. The crystals turned out to be large, fewer finished processors came out of one standard-size silicon wafer, and the need to migrate to a 10-nm process technology forced the company to limit production capacity for the production of 14-nm products. The company was able to break this vicious circle only towards the end of last year.
In the fourth quarter, Intel even released more processors than originally planned, as Chris Walker admitted, and now this allows the company to count on strengthening its market position, because demand does not even think to weaken. First, there are more than 100 million computers in operation around the world over the age of four that need modernization. Second, there are on average only six computers per 100 students worldwide, and the pandemic has shown that each student ideally requires a personal device for distance learning. Finally, the demand for tools for remote work is still far from saturation, which also allows Intel to count on growth in sales of its own products.